MA

Federal IT Services Industry Outlook, 2010-2015

Published: January 31, 2011

Acquisition WorkforceCloud ComputingCybersecurityInsourcingNetwork ServicesOutsourcing

INPUT's Federal IT Services Industry Outlook, 2010-2015 analyzes the trends in the federal IT services market and forces that will shape the direction and size of the segment going forward.

INPUT’s Federal IT Services Industry Outlook, 2010-2015 illustrates that demand for vendor-furnished IT services by the U.S. government will increase from $38.1 billion in 2010 to $51.7 billion in 2015 at a compound annual growth rate (CAGR) of 6.3 percent.

The report explores the following trends and drivers that are impacting the federal IT services marketplace:

  • Budget Environment
  • IT Management and Acquisition Policy
  • Human Capital
  • Technology Drivers
This report provides analysis of the potential scenarios resulting from the market impacts of key variables as well as their impact on the competitive landscape for IT services. The report includes IT services market sizing and forecasts by buyer segment – Civilian, Defense, and Intelligence – as well as by these major segments:

Professional Services – software development, systems integration, design and consulting, and education and training.

Outsourcing Services – application services, infrastructure services, network services, desktop services, IT business process outsourcing.

Key Findings

Evolving budget, technology, and policy priorities are introducing competing pressures into the federal IT services market that government and vendors must take into account, including:

  • Increased competition for fewer large programs driving teaming strategies and movement into adjacent markets;
  • The drive to modular acquisition and agile development impacting the size and scope of task order contracts and their competitive landscape;
  • Heightened scrutiny of outsourced functions to address standardization, security, privacy and oversight concerns;
  • Cost-pressures among purchasing agencies intensifying the importance of labor pricing and cost management among service providers;
  • Workforce challenges within federal agencies propelling demand for targeted education and training services; and
  • Cloud computing increases the need for design and integration support, but could threaten traditional application management, infrastructure, and desktop services.

INPUT’s Federal IT Services Industry Outlook, 2010-2015 is delivered in PowerPoint® format and includes an accompanying PowerPoint® Executive Briefing, and an Excel® workbook with charts and data.

I. Introduction II. Federal IT Services Market Trends, Drivers and Challenges - Budget Environment - IT Management and Acquisition Policy - Human Capital - Technology Drivers III. Federal IT Services Market Assessment -Historical Trends -Total Market Forecasts - Agency Spending and Forecasts - IT Services Opportunities IV. Projected Market Impacts on Contractors - Market Scenarios - Competitive Landscape V. Conclusions and Recommendations VI. Appendix