Federal Intelligence Community IT Market, 2015-2020

Published: December 18, 2015

Deltek's Federal Intelligence Community IT Market, 2015-2020 examines the trends and drivers shaping information technology buying in the federal intelligence marketplace and provides a forecast for the next five years.

Although budget pressures continue, intelligence agencies must continuously advance capabilities to safeguard the nation and combat terrorism. Like much of the federal government, the sobering fiscal environment of recent years is driving intelligence agencies to prioritize requirements and eliminate waste. Deltek’s Intelligence Community IT Market, 2015-2020 provides a 5-year market outlook exploring key catalysts, initiatives, programs, and policies shaping intelligence community information technology procurement.

Historically, intelligence agencies have been relatively protected from the budget shortages suffered by their civilian counterparts. In the wake of 9/11, the need to fulfill national security mission requirements contributed to generous hiring and spending within intelligence organizations. However, constricting budgets are forcing intelligence agencies to grapple with a new reality, forcing them to strive for efficiency and to prioritize IT requirements. Deltek’s report explores the impact of these changes on the market landscape, highlighting areas of opportunity for contractors such as cybersecurity, infrastructure consolidation, migrating to cloud services, and big data/analytics.

Deltek’s federal budget analysis and forecast provides estimates of IT funding that is typically classified, omitted from reporting through the Office of Management and Budget (OMB), embedded within non-IT programs or major defense programs. The report identifies IT priorities of intelligence community organizations and analyzes the historical IT spending habits of reporting intelligence agencies. The report also highlights the major drivers and inhibitors affecting federal intelligence IT investment decisions.

Deltek projects contractor addressable intelligence IT spending to contract from $9.8 billion in FY 2015 to $9.5 billion in FY 2020, reflecting a -0.4% Compound Annual Growth Rate (CAGR).

Key Findings

  • Budget Constraints - Agencies are confronted with the task of fulfilling mission goals and implementing innovative IT solutions in a constrained budget environment. Prioritization, consolidation, resourcefulness and efficiency improvements will be the key to success.
  • Push to Services – Intel agencies are implementing cloud solutions to gain cost savings, improved access to information, and shared intelligence community data and applications. While the shift promises increased effectiveness and efficiency, the sensitive nature of intelligence data presents hurdles to moving to an “as a Service” environment.
  • Shared Infrastructure – The move to shared, joint IT infrastructure and architectures is expected to improve data and information sharing, achieve efficiency, increase security and achieve other economies of scale. Progress varies across the intelligence community as agencies take different approaches to the transition.
  • Areas of Opportunity – Despite relatively flat IT spending expected over the forecast period, growth opportunities will persist in key areas such as cybersecurity, cloud, big data/analytics and infrastructure modernization.

Critical Insight for Vendors

The report provides companies and interested parties with a concise view of issues and technology forces that have significant impact on the intelligence IT landscape. Deltek’s 5-year market forecast is designed to enhance an organization’s business development planning with relevant, strategic analysis and spending projections. The report’s recommendations offer guidance on how impending trends may impact businesses, with a view on maximizing their market positioning and agency relationships to best leverage federal business opportunities.

Deltek’s Federal Information Security Market, 2015-2020 is delivered in PowerPoint® presentation format, including an Executive Briefing presentation summarizing the key findings and an Excel® workbook with data for the various forecasts and other key findings.

  • Purpose
  • Scope and Methodology
  • Key Findings
Budget and Policy Environment

Market Catalysts

Historical Spending, FY 2010-2014

  • Methodology
  • Spending by Agency
  • Top Vendors
  • Spending by Technology Segment: Comms/NS, HW/SW, Services
  • Spending by Technology Subsegment
Market Forecasts
  • Total Federal Addressable Intelligence Community Market
  • Addressable Market by Technology Segment
  • Addressable Market by IT Market Program
  • Addressable Market by Major Vertical Segments
Agency Analysis - Trends, Initiatives, and Reported Spending
  • Intelligence Agencies
  • Air Force Intelligence
  • Army Intelligence
  • Defense Intelligence Agency
  • Navy Intelligence
  • Marine Corps Intelligence
  • Central Intelligence Agency
  • National Security Agency
  • National Geospatial-Intelligence Agency
  • National Reconnaissance Office
  • Federal Bureau of Investigation
  • Drug Enforcement Agency
  • Homeland Security
  • Coast Guard Intelligence
  • State
  • Energy
  • Treasury
Conclusions and Recommendations
  • Conclusions on the Federal Intelligence Community IT Market
  • Recommendations to Vendors