Federal Information Technology Market, 2014-2019

Deltek forecasts demand for vendor-furnished information technology products and services by the U.S. government will decline from $101 billion in 2014 to $94 billion in 2019 at a compound annual growth rate (CAGR) of -1.6%.

Key Findings

Agencies continue to experience increasing budget pressure, funding uncertainties, numerous technology and management mandates, and growing mission demands. Agencies struggle with meeting near-term demands while planning for long-term requirements under ambiguous budget circumstances. As a result, agency leaders continue to focus on increasing effectiveness and reducing unnecessary spending to make the most of shrinking budgets. Deltek predicts the information technology market will contract over the next few years as agencies look to lower costs, increase efficiencies and juggle priorities. Although IT budgets will continue to decline, shifting of budget dollars to high priority projects that facilitate mission and operational effectiveness will create pockets of opportunity across the federal government.

Significant factors shaping the federal IT market:

• Agencies continue to direct funding to projects that support IT transformation, such as cloud computing, data center optimization, “big data,” mobility, and cybersecurity.
• Acquisition strategies and reform initiatives, such as strategic sourcing, shared services, Lowest Price, Technically Acceptable (LPTA), and the pending Federal IT Acquisition Reform Act (FITARA), are reshaping how agencies procure IT products and services.
• Budget uncertainty continues to force agencies to reprioritize and create new funding baselines, which results in some program rescoping, consolidation and delays.

Critical Insight for Vendors

Deltek’s Federal Information Technology Market, 2014-2019 report takes a 5-year strategic view of the trends, drivers and inhibitors impacting federal information technology procurement. Looking beyond the scope of traditional IT, this analysis incorporates IT spending that is embedded within non-IT programs or major defense programs or is otherwise typically not reported through the Office of Management and Budget. The report:

• Provides companies with insight into the issues, policies and technologies shaping the market landscape over the next five years.
• Examines the market dynamics shaping individual technology market segments and agency spending.
• Includes insight from industry and government thought leader surveys.
• Delivers market forecasts to support vendor’s strategic planning process with in-depth analysis and spending projections.
• Offers recommendations to help contractors evaluate the impact of trends on their business and competitive market position.

Deltek's Federal Information Technology Market, 2014-2019 report is delivered in PowerPoint® format. The report package also includes a PowerPoint® Executive Briefing, and an Excel® workbook.