Cloud Computing: Declining Federal IT Market Will Still Have Opportunities
Grazed from GovWin. Author: Deniece Peterson.
As the federal information technology market transitions, contractors are finding that some of the key opportunities available now could mean less work in the future.
Initiatives to share services and move more computing to the cloud will likely mean that spending will contract or flatten over the next five years. Deltek anticipates that nearly every agency will experience a decline and total federal IT spending could fall from $121 billion in 2012 to $113 billion by 2017.
Spending on technology equipment and professional services is particularly expected to decline as the government makes fundamental changes to the way it purchases and manages its technology. Reductions in the number of federal workers and a transition to cheaper mobile devices will drive down equipment spending while shared services, consolidation and cloud computing will reduce services spending…

