FEDERAL INFORMATION TECHNOLOGY MARKET, 2019-2024
Deltek forecasts federal spending on contractor-supplied Information Technology (IT) products and services will grow from $110.1 billion in FY 2019 to $116 billion in FY 2024 at a compound annual growth rate (CAGR) of 2.2%.
Federal IT is in the midst of a broad transformation effort driven by a combination of White House policies, technological advances and legislative initiatives. The Trump Administration?s presidential management agenda calls for modernizing agency IT environments through the adoption of cloud-based shared services, leveraging data as an enterprise asset, improving citizen services and streamlining IT acquisitions. Cloud computing, the incorporation of advanced analytics and artificial intelligence into cybersecurity processes, and the outsourcing of agency networks are key areas of growth in the federal IT space.
Although the Bipartisan Budget Act of 2018 provided higher near-term funding, agencies will be under pressure in the coming years to increase efficiency, eliminate waste and adopt emerging technologies that promise to improve service-delivery. Deltek forecasts the federal IT market will show modest growth over the next five years as agencies establish strategies to successfully manage competing priorities while streamlining costs.
Budget Uncertainty. Congress and the White House continue to negotiate the terms of a budget deal to stave off sequestration for FY 2020 and potentially FY 2021, but the pace is slow.
Flat Budgets for IT. The federal IT budget remains relatively flat, driven by cost cutting initiatives balanced by investments in modernization and emerging technologies.
New Paths to the Cloud. Agencies are leveraging solutions that will allow them to migrate to the cloud without a new Trusted Internet Connections (TIC) policy, removing a previous roadblock to faster cloud adoption.
Cybersecurity. Threats are driving shifts in priorities and strategies: cloud computing, shared services, infrastructure modernization, advanced analytics, and artificial intelligence at nearly every agency.
Securing Contractor Environments. New security policies focus on increasing contractors? responsibility for safeguarding federal data, including pending FAR addition regarding Controlled Unclassified Information (CUI), DOD?s upcoming Cybersecurity Maturity Model Certification (CMMC) program and the supply chain security executive order and legislation.
Category Management. GSA and OMB?s initiative is streamlining IT contract spending and making contract positioning critical.
Potential New Administration. A change of administration could be on the horizon in late 2020, impacting budget priorities, leadership stability, strategic direction and program implementation progress.
Critical Insight for Vendors
Deltek's Federal Information Technology Market, 2019-2024 report takes a strategic 5-year look at the trends, drivers, and inhibitors shaping federal information technology procurement. The scope of Deltek?s analysis includes traditional IT and embedded IT spending within non-IT programs.
The report provides:
Insight into the factors, policies, and technologies shaping the market landscape over the next five years.
Insight into the dynamics shaping IT market segments and agency spending.
Insight from industry and government thought leaders.
Market forecasts to support vendors? strategic planning.
Recommendations to help contractors evaluate the impact of trends on their businesses.
Deltek's Federal IT Market, 2019-2024 report is delivered in PowerPoint? format, including a PowerPoint? Executive Briefing, and an Excel? data workbook.
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