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Deltek: Federal IT Spending Will Aim to Cut Waste

Agencies to Spend $102B in FY 2018, Down from $112B in FY 2013

A new report from overnment contracting market research firm Deltek predicts federal agencies will continue to cut information technology over the next five years as they increasingly aim to cut waste and duplicative programs.

The reductions will primarily result in value tradeoffs such as eliminating redundant investments, selecting lower cost alternatives and strategic sourcing to leverage federal purchasing power, Deltek says.

"There will be continued growth in areas that are focused on maximizing the efficiency of current systems, such as cloud computing and consolidation related initiatives," said Alex Rossino, a Deltek principal analyst.

Federal IT spending will decline from $112 billion in fiscal year 2013 to $102 billion in fiscal 2018, Deltek says.

The firm also predicts continued investment from agencies in technologies for cybersecurity, ISR and mission applications.

“Despite the tight budget environment, particularly in the Department of Defense, agencies will continue spending billions on IT in the coming years” said Deniece Peterson, director of federal industry analysis at Deltek.

“But they will be forced to be more judicious about where those investments are made," Peterson added.

More Stories By Tim Watson

Tim Watson supervises all media production at Executive Mosaic, a digital media company that provides insight, information and analysis on several industries, including government contracting.

He previously produced byline coverage with the economics team at USA Today and evaluated lending proposals for the Overseas Private Investment Corporation.

Tim was born and raised in Washington, DC and holds a bachelor’s degree in Business-Journalism from Washington and Lee University and a certificate in budgeting and finance from Georgetown University's School of Continuing Professional Education.

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