MA

Federal Information Technology Services Outlook, 2011-2016

Published: January 26, 2012

Acquisition ReformCloud ComputingCybersecurityOutsourcing

Deltek's Federal IT Services Outlook, 2011-2016 analyzes the trends in the federal IT services market and the forces that will shape the direction of the segment over the next several years.

Deltek forecasts demand for vendor-furnished IT services by the U.S. government will decrease from $39.5 billion in 2011 down to $36.5 billion in 2016 at a compound annual growth rate (CAGR) of -1.6%.

Key Findings

The report explores the federal IT services market environment and expected changes that will impact service providers, systems integrators, and federal contractors over the next five years. The report examines market catalysts, market forecasts and predictions, and agency environments.

Deltek believes the market will grow over the next two years and then contract in the out-years reacting to federal technology priorities, administrative policy initiatives, and acquisition reform efforts:

  • Data center consolidation, cybersecurity, and migration to cloud computing help stabilize and grow the IT services sector in the short term.
  • In the long term, the market is expected to soften as cloud gains momentum and consolidated infrastructures require less integration and customization services.
  • Mandates to cut services contract spending and continued scrutiny of services contract inventories are projected to cause an overall 8% decline in IT services spending over the forecast period.

Critical Insight for Vendors

The report provides companies and other interested parties with a detailed view of the future federal IT services market and a market forecast for the next five years, and is designed to enhance a vendor’s federal planning process with relevant strategic analysis. The report provides recommendations which will guide federal contractors to maximize their market positioning to best take advantage of federal business opportunities.

Deltek's Federal Information Technology Services Outlook, 2011-2016 report is delivered in PowerPoint® format. The report package also includes an PowerPoint® Executive Briefing, and an Excel® workbook with charts and data.

  • Introduction
  • Market Catalysts: Trends, Drivers & Inhibitors
  • Market Forecasts
  • Agency Profiles – Top 10 IT Spenders
  • Conclusions and Recommendations
  • Appendix