FEDERAL INFORMATION TECHNOLOGY MARKET, 2017-2022
Published: 07/14/2017
Description
Deltek forecasts federal spending on contractor-supplied Information Technology (IT) products and services will grow from $99.5 billion in FY 2017 to $104.9 billion in FY 2022 at a compound annual growth rate (CAGR) of 1.1%. Although the funding caps imposed by sequestration are likely to be postponed again, agencies will continue to face complex budgetary scenarios in the coming years. Political discord and rising federal debt levels continue to drive budget sensitivity within Congress, forcing agencies to do more with less. The FY 2018 budget request – the first proposed budget by the Trump Administration - indicates a willingness to increase funding for the Department of Defense at the expense of some civilian agencies. The Trump Administration’s IT management agenda continues to emerge, with a focus on mandates that drive innovation and modernization while also pressuring agencies for cost reductions and operational reform. Agency missions continue to grow in scope and complexity, laying the groundwork for continued investment in transformative technologies such as cloud computing, advanced analytics and cybersecurity. Deltek forecasts the federal IT market will grow modestly over the next few years as agencies look to lower costs, increase efficiencies, and juggle priorities. Key Findings Priority Areas Unchanged – Growth opportunities remain in key strategic areas such as: cloud computing, data center optimization, cybersecurity, big data and infrastructure modernization.New Administration – The new administration has begun to reset some IT policy, but primary priorities carry the same themes under different branding.Agency Reorganization and Reform – The Trump Administration’s executive order directing enterprise-wide assessment of operational processes and workforce balance will likely uncover both opportunities and challenges for contractors.Legacy System Modernization – A centralized IT working capital fund via the creation of a Technology Modernization Fund or the passage of the Modernizing Government Technology (MGT) Act would speed modernization efforts significantly, however agencies must drive tangible cost savings to ensure the ongoing viability of the fund.Critical Insight for Vendors Deltek's Federal Information Technology Market, 2017-2022 report takes a strategic 5-year strategic 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, 2017-2022 report is delivered in PowerPoint® format, including a PowerPoint® Executive Briefing, and an Excel® data workbook.
