Welcome!

Artificial Intelligence Authors: Yeshim Deniz, Pat Romanski, Elizabeth White, Liz McMillan, Zakia Bouachraoui

News Feed Item

Deltek Expects Federal IT Services Market to Remain Flat through 2017

Deltek, Inc., the leading global provider of enterprise software and information solutions for professional services firms and government contractors, has a new report that forecasts the Federal IT Services Market to remain nearly unchanged through 2017.

According to Deltek’s new report, Federal IT Services Market 2012-2017, federal spending by the U.S. government on vendor-furnished IT services will decrease from $60.9 billion in 2012 to $60.4 billion in 2017. Federal IT services spending includes funding for IT professional services such as program management, systems integration, software development, and technology training as well as IT outsourcing of federal systems, applications and infrastructure.

Despite the decrease in overall spending, contractors will continue to find growth opportunities in areas such as data center consolidation, cybersecurity, cloud computing, and the implementation of big data solutions. These will help keep the market segment stable and potentially grow around specific areas of IT services while shifting funds from other, lower-priority areas.

“Agencies continue to consolidate their data centers and will require continued contractor support to converge their infrastructure,” says Deltek analyst Angie Petty. “These efforts, along with moving to shared services, cloud computing, and more effective cybersecurity and data management, will sustain some measure of demand and present opportunities for services in these areas.”

Doing More with Less

The nearly flat market reflects agencies’ reactions to federal technology priorities, the increasingly uncertain budgetary environment, and the ongoing pressure to do more with less.

In fact, the report finds that due to tighter budgets, increased scrutiny of IT projects, competing priorities, and desire for quick ROI, agencies will move toward smaller scale, phased IT projects that result in more frequent competitions and smaller awards. Contractors should be prepared for an increase in smaller, short turn-around task orders and contracts.

“Phased IT projects will result in greater likelihood for meeting program objectives and budget timelines,” says Deltek analyst John Slye. “Look for continued modular builds using an agile approach to development projects, which means more frequent competitions and smaller awards.”

Key Shifts

According to the report, cloud computing usage will continue to grow over the forecast period, and will be the most critical influence for the IT outsourcing services sub-segment.

“Several of the technology trends that are driving demand for IT services in the short-term will actually reduce demand in the longer-term,” says Petty. “Transformative delivery models like cloud and IT-as-a-service change the nature of many outsourced services and shuffle the competitive card deck for providers. The results will be an even tighter, more competitive market in the future.”

Another significant factor in the market’s slight decline will be strategic sourcing. According to the report, “Agencies with long standing programs already in place are relying on them more heavily, while those without established programs plan to introduce them within the next one to two fiscal years. The result: some IT services contractors shut out of opportunities due to lack of positioning on preferred contract vehicles, and potential harm to small business contractors and ultimately, the economy.”

Table of Contents

The Federal IT Services Market 2012-2017 report provides a broad range of market, agency, and contract information including:

  • Market Catalysts
  • Market Forecasts
  • Agency Analysis
    • Major Initiatives and IT Services Contract Spending
    • Agency Forecasts
    • Sub-Segment Market Factors
    • IT Services Segments in the Top 10 GWACs and IDIQ Vehicles
    • Top GWACs and MA/IDIQ Contracts Held by the Top 10 IT Vendors

The report also includes recommendations for large and small contractors – changes each can implement to be successful during this shrinking market period.

Click here to download the new Federal IT Services Market 2012-2017 report. Or, contact Jessica Primanzon directly to schedule an interview with one of the Deltek industry experts.

About Deltek

Deltek is the leading global provider of enterprise software and information solutions for professional services firms and government contractors. For decades, we have delivered actionable insight that empowers our customers to unlock their business potential. 16,000 organizations and 2 million users in over 80 countries around the world rely on Deltek to research and identify opportunities, win new business, optimize resources, streamline operations, and deliver more profitable projects. Deltek – Know more. Do more.® www.deltek.com.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...