GovWin IQ Document - Market Report - Federal Information Technology Market, 2016-2021
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Market Report

Federal Information Technology Market, 2016-2021 (Jun 2016)

Deltek's Federal Information Technology Market, 2016-2021 explores market drivers, strategic programs, key initiatives and forecasts federal information technology spending over the next five years.


Deltek forecasts federal spending on contractor-supplied information technology products and services will decline slightly from $99.8 billion in FY 2016 to $98.3 billion in FY 2021 at a compound annual growth rate (CAGR) of -0.3%.

Although the Bipartisan Budget Act of 2015 provided a small funding infusion, agencies continue to face budget pressures, numerous technology and management mandates, and an impending administration change. Agencies are challenged by the need to meet near-term demands while planning a long-term strategy, modernize IT environments and streamline contracting and management processes, all within an often ambiguous environment. Deltek predicts the information technology market will remain flat over the next few years as agencies look to lower costs, increase efficiencies and juggle priorities.

Key Findings

  • Priority Areas Unchanged – Growth opportunities remain in key strategic areas such as: cloud computing, data center optimization, cybersecurity, big data and infrastructure modernization.
  • Election Impact –The new administration may reset some IT policy, but policies will likely carry the same themes under different branding.
  • Contract Streamlining – Consolidating contracting onto fewer contracts will heighten competition.
  • Legacy System Modernization – The IT Modernization Fund could bring significant opportunities to contractors, provided that agencies can drive the tangible cost savings required to reimburse the fund.

Critical Insight for Vendors

Deltek's Federal Information Technology Market, 2016-2021 takes a 5-year strategic view of the trends, drivers and inhibitors impacting federal information technology procurement. The scope of analysis includes traditional IT as well as embedded IT spending within non-IT programs.

The report provides:

  • Insight into the factors, policies and technologies shaping the market landscape over the next five years.
  • Insight into the dynamics shaping IT market segments and agency spending.
  • Insights from industry and government thought leader surveys.
  • Market forecasts to support vendor’s strategic planning .
  • Recommendations to help contractors evaluate the impact of trends on their businesses.

Deltek's Federal IT Market, 2016-2021 report is delivered in PowerPoint® format. The report package also includes a PowerPoint® Executive Briefing, and an Excel® workbook.

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Federal Information Technology Market, 2016-2021

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