Top 5 IT Industry NAICS Codes and their Spending Trends

Information Technology (IT) modernization in the federal government has been on the rise for several years, and there's no slowing down in sight. It's safe to say that IT modernization remains a top priority, even across presidential administrations. 

As a current or prospective GSA Schedule contractor, one factor driving your government sales and marketing success is the ability to find great opportunities. One way to do this is through North American Industry Classification System (NAICS) Codes. Knowing what your NAICS Codes are, how they rank, and what the trends are is the first step in figuring out how you fit into the government space. Given that IT is a booming industry, we decided to follow the top 5 IT NAICS Codes through the GSA Multiple Award Schedule (MAS) Program and report how they are performing in federal procurement, with an emphasis on how the current administration may impact these numbers. 

What is a NAICS Code?

Before we launch into the top IT NAICS Codes, it's important to understand what NAICS Codes are and their significance for government contractors. North American Industry Classification Codes, or NAICS Codes, are reference numbers used to classify the core offerings and industry of a business. Government agencies use NAICS Codes to collect, analyze, and publish statistical data on the U.S. business economy. 

Why Are NAICS Codes Important for GSA Contractors? 

NAICS Codes filter your business into categories that government agencies use to fulfill their procurement needs. In other words, NAICS Codes can help you find relevant contracting opportunities. NAICS Codes also help determine whether your company is considered a small business and can therefore reap the benefits of small business set-aside contracts. 

It's important to note that the NAICS Code system is self-assigning, so you want to make sure you pick the most relevant code for your business. About 5 years ago, NAICS Codes and Special Item Numbers (SINs) which directly correlate to GSA Schedules, were cross aligned they now have a very similar numbering system. So you can gain insight into both industries at large and GSA-specific SIN data when looking at NAICS Code performance. 

Top 5 IT NAICS Codes

Using GSA's Schedule Sales Query +, we created a table highlighting the top IT-related NAICS Codes for Fiscal Years 2023-2026 (so far). Of course, the FY2026 numbers are much lower because the year isn't over and some numbers have yet to be reported from this quarter, but it's clear the spending is trending largely the same. FY2025 saw a drop across all the numbers, which is to be expected with the administration change and budget shifts, but with spending increasing on certain IT initiatives, we can expect them to grow steadily through the rest of the year. 

In general, these NAICS have grown. Four out of the five top IT NAICS Codes were also the top NAICS Codes over all the industries. That means that government agencies are spending more money on IT products total more than anything through the GSA Schedules program. If you want to learn more about each NAICS Code and how they fit into government procurement system, you can visit naics.com. 

Executive Actions Impacting IT Spending

What can we expect to see for the future of IT spending? In general, the future looks relatively promising in terms of spending and prioritization of IT products and services. However, we can expect to see some cuts here and there as the White House continues to focus on eliminating waste and cutting budgets where necessary. 

While majorly readjusting the budget, the Trump Administration has made it clear they have a strong emphasis on technology and software modernization, especially as it pertains to cloud solutions, so we can expect to see more IT opportunities in the next year. 

Additionally, Congress just reauthorized the the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs until 2031, which fund billions of dollars annually to small businesses with technology focused solutions. 

Artificial Intelligence (AI) also remains a priority under the new administration. In one of Trump's first Executive Orders, he laid out the new administration's stance on AI development and utility, removing several barriers that were placed for precaution during the Biden Administration. There is also the AI action plan, and future plans to govern how AI is used in federal contracts. 

Top Government Agency Spending By NAICS Code

Let’s break down these 5 NAICS codes a bit further. We looked at the top 3 government agencies doing business with these NAICS Codes in 2025. If your company is listed under one of these NAICS Codes or you are looking to add one in the future, you'll want to keep a close eye on these agencies. The agency and order has changed a bit from 2024 to 2025. The Department of Defense (War) continues to top the charts, but the VA and HHS have switched orders and in some cases were knocked off the top 3. We used USAspending.gov to find this information. 

Want to Learn More About Opportunities with NAICS Codes?

We hope it's clear now that NAICS Codes play an integral role in your GSA Schedule. It's important you choose the right NAICS Code, and understand how it can be used to determine business size standards as well as identify relevant contracting opportunities. 

If you want to learn more about NAICS Codes and opportunities, check out our blogs below:

• NAICS Codes 101 in 2025
• Identify Your Best Opportunities with NAICS Codes

Of course, one of our consultants is here to help if you have questions about your GSA Schedule or finding the right NAICS Code for your business.