State Department IT Forecast is for Modest Growth from 2017 to 2022
Published: August 03, 2017
The outlook for Department of State spending on contracted Information Technology (IT) over the next five years shows signs of very modest growth.
In Deltek’s recently released Federal Information Technology Market, 2017-2022, we forecast that spending by the State Department (DOS) on contracted IT goods and services will increase from 1.28 billion in FY 2017 to $1.4 billion in FY 2022 reflecting a 1.8% compound annual growth rate (CAGR). (See chart below.) Deltek’s forecast projects the strongest growth in software products, followed by IT services and communications and network services, with IT hardware showing only slight and targeted increases over the forecast period.
IT Investment Drivers
Amidst organizational, fiscal, and other challenges, the relatively flat top-line spending levels will still sustain key IT priority areas such as cybersecurity, cloud computing, mobility, and IT innovation.
Current cybersecurity policy focuses on implementing a holistic cybersecurity program – including the NIST Risk Management Framework, FISMA, CDM, and maturing security processes – to enable rapid introduction of new technology securely. The Secretary of State also has a role in formulating U.S. policy for international cyber deterrence and cooperation under the latest White House cyber- executive order.
State sees cloud computing as a means to achieve increased collaboration, sharing, productivity, mobility, and security. Ongoing investments in cloud-based programs and services enhance State’s IT infrastructure lifecycle and allow for rapid scalability. State is using a dedicated private cloud environment to consolidate processing and network services and to centralize virtually all information management.
Mobile Diplomacy is a top priority since the nature of the mission requires significant activity outside of U.S. facilities. Efforts center on obtaining the processes and technologies needed to effectively and securely manage mobile devices, wireless networks, and mobile computing services and applications.
The State Department is also pursuing “innovative diplomacy” through technology advancements to address evolving diplomatic and national security needs, including a efforts that focus on collaboration, knowledge management, data integration and analytics, and performance metrics.
These and other areas of priority investments will continue to provide targeted opportunities for contractor-provided solutions and services within an overall atmosphere of cost containment and efficiency pursuits that will moderate top-line growth over the next five years.