New Series: WashingtonExec 2012 Prediction Issue: Execs Speak Out
2012 is fast approaching, and with it comes big changes in the Federal IT industry. WashingtonExec is giving local executives the opportunity to share their thoughts on where they see the government contracting industry headed. Leaders of the industry were asked a series of predictions questions focused on challenging issues such as cloud computing, healthcare IT, defense and so forth.
Today’s quick Q&A is with Sid Fuchs, President and CEO of MacAulay-Brown, Inc. (MacB).
What will next year hold for Government Contracting?
Sid : 2012 will be a year unlike any other we’ve seen in some time. There will be some bright spots, but for the most part, we are entering into a period of intense budget reductions, increased oversight and compliance, and project delays. The pressures of this environment will clearly separate the true stars of the industry from the companies and leaders that rode the tremendous tailwind of the past 10 years.
More M&A Activity? More IT budget cuts?
Sid: M&A will continue to b e a critical component in this industry, especially for public and private equity backed companies as they strive to satisfy investors’ demands for investment returns. Private companies, with no outside financial sponsorship, will have a distinct advantage in that they can take a “marathon” approach to growth and pick their competitive spots more deliberately.
What shape will collaboration take between industry and government in addressing tough issues: Healthcare, Defense, Cloud, etc?
Sid: I sense the collaboration between government and industry is regressing in many areas. For some key issues, such as the ones you mention, working cooperatively will be required to solve the tough problems ahead. Innovation, even in this very tough and price sensitive environment, must continue.