Federal Information Technology Market, FY 2012-2017

Published: June 29, 2012

Deltek’s Federal Information Technology Market, 2012-2017 captures market catalysts, strategic programs and initiatives and forecasts federal information technology spending over the next five years.

Deltek forecasts demand for vendor-furnished information technology products and services by the U.S. government will decline from $121 billion in FY 2012 to $113 billion in FY 2017 at a compound annual growth rate (CAGR) of -1.4%.

Key Findings

Increasing budget pressure, government mandates and rapidly advancing technologies are challenging agencies to ‘do more with less.’ Amidst consolidation initiatives to increase efficiencies and reduce redundant spending, federal agencies are aligning their technology investment strategies with evolving capability requirements and beginning to shift how they do business.

Deltek predicts the information technology market will contract over the next few years as agencies look to reduce costs and achieve greater efficiencies. Pursuing these goals, agencies are streamlining and transforming IT by redefining priorities, strategies and methodologies to enable greater agility. Significant factors shaping the federal IT market:
  • Uncertainty around future budgets and the strain of current funding levels will drive agencies to reprioritize, rescope, cancel or delay programs.
  • Despite market contraction, opportunities will exist over the next five years in areas supporting IT transformation, including information security, data center consolidation, business system modernization, cloud computing, mobility and “big data” solutions.
  • Although the federal IT workforce levels are more resilient than the overall workforce, skill gaps in critical areas – such as cybersecurity, cloud computing and program management – will help sustain the need for contractor support.
Critical Insight for Vendors

Deltek’s Federal Information Technology Market, 2012-2017 report takes a 5-year strategic view of the trends, drivers and inhibitors impacting federal information technology procurement. Expanding on the scope of previous forecasts, this analysis incorporates IT spending that is typically not reported through the Office of Management and Budget or is embedded within non-IT programs or major defense programs. The report:
  • Identifies numerous trends and drivers to provide companies with an overview of issues and technologies shaping the market landscape over the next five years.
  • Drills down into the unique issues driving individual market segments and agencies.
  • Includes insight from industry and government thought leader surveys.
  • Provides market forecasts designed to enhance a vendor’s federal planning process with strategic analysis and spending projections.
  • Offers recommendations to aid vendors and contractors in evaluating how trends may impact their business with a view to competitive market positioning.
Deltek's Federal Information Technology Market, 2012-2017 Report is delivered in PowerPoint® format. The report package also includes a PowerPoint Executive Briefing, and an Excel® workbook.