Federal Communications and Network Services Market, FY 2012-2017

Deltek forecasts demand for communications and network services solutions by the U.S. government will remain relatively flat, growing slightly from $18.3 billion in FY 2012 to $19.2 billion in FY 2017 at a compound annual growth rate (CAGR) of 1.0%. The report outlines trends in the use of mobile communications, unified communications, and satellite communications in the federal government, and profiles the use of these solutions in the top 10 agency spenders.

Key Findings

Against a backdrop of falling IT budgets and ongoing network integration to enable Everything-over-IP (EoIP), agencies are turning to strategic sourcing and integrated technology solutions to deliver enterprise capabilities. Federal spending on solutions is sustaining the communications services market and heightening competition as the lines blur between “IT providers” and “communications providers.”

Deltek believes the market will grow only slightly over the next few years as agencies “spend to save”. There are several issues that will shape the communications and services market over the next five years:

• Bandwidth requirements from expanding data volume will continue to increase, even as trade-offs are made to accommodate budget constraints and changing policy priorities.
• Agency networks are slowly evolving into integrated common operating environments based on internet protocol, uniform standards, and a smaller variety of endpoint computing and communications devices.
• Contracts are reflecting the convergence of communications and IT solutions in strategic sourcing and end-to-end solutions acquisitions.
• Although the implementation of BYOD policies is progressing, agency security concerns could minimize the use of personal devices by federal employees.
• Agencies are moving toward Unified Communications as part of an overall transition to network computing to reduce costs and deliver new capabilities.

Critical Insight for Vendors

Deltek’s Federal Communications and Network Services Market, FY 2012 – 2017 report is intended to provide companies and other interested parties with a detailed view of the issues shaping communications and network services spending over the next five years. The report examines market catalysts, including economic and policy forces, market forecasts and predictions, and contractor implications. For the top 10 departments, the report identifies the contracts and contract vehicles most used to acquire communications and network services, as well as the vendors serving those agencies.

Deltek’s Federal Communications and Network Services Market, FY 2012 – 2017 report is delivered in PowerPoint® format. The report package also includes a PowerPoint Executive Briefing and an Excel® workbook with charts and data.