Accenture’s Kay Kapoor 2012 Outlook: Economic Headwinds, Bid Protests, Affordability

Kay Kapoor, Accenture

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.

Kay Kapoor, Managing Director of Accenture Federal Services gave WashingtonExec some thoughtful responses to our questions regarding the future of government contracting in 2012.

“Against a backdrop of economic headwinds, dwindling federal resources and increasing taxpayer expectations comes the very real challenge of delivering quality services to clients facing more pressures than at almost any other point in our government’s history.

There are three key factors that will shape the new year: Continued uncertainty around annual government funding, Administration and Congressional decision-making through the filter of an election campaign; and remaining committed to the federal IT policy.

Government leaders will have to do “more with less” and sometimes “less with less.”  Technology will play an even more important role.  I think strategic cost-cutting initiatives will be imperative.  Cost takeout with programs around consolidation, smaller investments focused on reducing operational costs, share-in-savings, and identifying and halting improper payments will be critical to success.

Budget uncertainty becomes the norm, making it even more difficult for agencies to make timely, cost-effective decisions. This will be complicated by a series of “continuing resolutions” and “mini buses,” instead of annual appropriations bills.  We will see an increase in mergers and buyouts to acquire niche market spaces as companies try to remain competitive and viable. We’ll see increased activity by non-incumbents competing for rebid contracts. This new dynamic also will lead to an increase in bid protests, as the reality of fewer federal dollars redefines the market.

But this reality also creates an opportunity to offer truly innovative solutions to our federal customers as they build the government of the future while facing tremendous economic and global challenges. Constantly expanding our expertise around the changing needs or our customers will help them balance citizen demands for quality, affordable services with the White House commitment for transparency in government.”


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