February 11, 2011
A study released today from research group INPUT notes that “demand for vendor-furnished IT services by the U.S. government will increase from $38.1 billion in 2010 to $5.17 billion in 2015, creating strategic openings for contractors after the release of the fiscal year budget request for this year.
The analyst firm notes that while there is a ten percent reduction planned this year for federal professional and technical service contracts, many of the cuts will be centered on “cost benefit analysis, policy review, program evaluation and management services” versus standard IT services.
In 2010, Federal CIO Vivek Kundra called for massive enhancements to existing government IT infrastructure with the central goal of consolidating data centers and eliminating waste and inefficient IT practices across agencies. Despite the ten percent decrease projected, which INPUT claims will not have an effect on standard IT contracts, Kundra’s directives will continue to open opportunities for federal IT contractors as the process of consolidation continutes.
John Slye, principal analyst for INPUT’s study noted that, “Due to contemporary demands including data center consolidation, enhancements in cyber security and national trends toward cloud computing, the IT service industry will be equipped to bear the force of federal cuts better than others.”
INPUT’s report, which can be accessed here, provides insights about the tough decisions that the Cloud First policy will spark, how agencies are considering questions of outsourcing, and more general matters of security, automation, SOA, and massive data demands.
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