Federal Information Technology Market, 2015-2020

Deltek forecasts demand for vendor-furnished information technology products and services by the U.S. government will decline from $97.7 billion in 2015 to $94.4 billion in 2020 at a compound annual growth rate (CAGR) of -0.7%.

Key Findings

Federal agencies are working to improve their IT management and asset performance amidst budget uncertainties, various policy mandates, growing mission objectives, and rapidly changing technologies. As a result, agency leaders continue to focus on increasing effectiveness and reducing unnecessary spending to make the most of their IT budgets.

Deltek predicts the federal information technology market will contract slightly over the next few years as agencies look to sustain priorities, cut costs, and raise efficiencies. As IT budgets are constrained, agencies will shift dollars to high priority projects that aid mission and operational effectiveness. This will create pockets of opportunity across the federal government.

Major factors shaping the federal IT market:

• IT spending will remain relatively flat over the forecast period, with growth opportunities in key areas such as cloud, cybersecurity, big data and infrastructure modernization.
• Uncertainty regarding sequestration will result in a shaky start to FY 2016. Agencies will remain fiscally conservative and focus on mission-critical needs.
• Agencies continue to reduce commodity IT costs through strategic sourcing, Enterprise Licensing Agreements (ELAs), delaying or descoping tech refreshes, and scavenging existing and underutilized assets.
• Ongoing IT asset discovery continues to drive shifts in IT portfolio strategies and cost avoidance.

Critical Insight for Vendors

Deltek’s Federal Information Technology Market, 2015-2020 takes a 5-year strategic view of the trends, drivers and inhibitors impacting federal information technology procurement. The scope of analysis includes traditional IT as well as embedded IT spending within non-IT programs.

The report provides:

• Insight into the factors, policies and technologies shaping the market landscape over the next five years.
• Vision into the dynamics shaping individual technology market segments and agency spending.
• Opinions and insights from industry and government thought leader surveys.
• Predictive market forecasts to support vendor’s strategic planning process with in-depth analysis and spending projections.
• Recommendations to help contractors evaluate the impact of trends on their business and competitive market position.

Deltek's Federal Information Technology Market, 2015-2020 report is delivered in PowerPoint® format with detailed agency analysis. The report package also includes a detailed appendix, PowerPoint® Executive Briefing, and an Excel® workbook.