FEDERAL ENTERPRISE BUSINESS SYSTEMS, 2015

Published: 12/19/2014

Description

Federal business system modernization efforts have been ongoing for a number of years fueled by administrative mandates, policy and legislation, as well as the desire to achieve efficiencies in commodity IT services. Deltek research uncovers spending trends that provide insight into agencies’ business system consolidation and modernization goals. Significant factors shaping business systems modernization Deltek predicts federal addressable spending on business systems to total $10.6 billion for FY 2015, marking a slight increase over FY 2014 spending levels. The majority of agencies began modernization efforts with financial management and human resources systems and applications. They are now ready to continue system enhancements by adding additional functionality and in some cases implementing technology, such as cloud infrastructure, that was not available at the time of initial modernization efforts. Agencies have not progressed as rapidly with modernization of asset andmaterial management systems or administrative management systems, leading to contractor opportunities in these areas. Agencies’ next phase of development and implementation will involve mobile access and the addition or advancement of business analytics applied to current business systems. Key Findings FY 2015 spending on human resources management business systems is expected to grow by 8.5% over FY 2014 levels to $3 billion. Spending on financial management systems is expected to reach $3.4 billion in FY 2015, a 4.7% increase from the previous year. Federal spending on asset/material management systems and administrative/government management systems will remain flat. Defense, Treasury and Veterans Affairs are the top federal spenders on business systems. Critical Insight for Vendors Deltek’s Federal Enterprise Business Systems, 2015 report takes a strategic view of the market factors shaping federal procurement of business systems. This report is delivered in PowerPoint® format and includes an Executive Briefing and an Excel® workbook.

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