Mark Hunker,COO of Catapult
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.
Ever wonder what the COO and EVP of Catapult Technologies thinks will happen to the M&A government contracting market in 2012? Read more below!
WashingtonExec: What will next year hold for Government Contracting? More M&A Activity? More IT budget cuts?
Mark Hunker: Information technology infrastructure support remains critical to increasing efficiency and productivity within the government. Federal agencies will continue to consolidate in order to save money and do more with fewer resources.
The debt issues have resulted in spending cuts that we have been told will take effect in 2012 and will be implemented over 10 years. According to the Center on Budget and Policy Priorities, federal spending is still set to rise from approximately $3.5 trillion in 2010 to $5.3 trillion in 2021, so even with these cuts the government will continue to spend, but with an eye toward IT consolidation, shared services, and cutting costs.
From an M&A perspective, companies that are in a strong strategic position will always be an acquisition target, regardless of national economic condition. And, mergers will always take place when companies see the opportunity for mutual benefits, including cost efficiencies.
WashingtonExec: What shape will collaboration take between industry and government in addressing tough issues: Healthcare, Defense, Cloud, etc?
Mark Hunker: I believe this type of collaboration will grow in these times of budget cutting. Government agencies will likely come together more in order to keep pace with the changes that new technologies bring. Industry’s investments in these technologies will make collaboration, like the kind that ACT/IAC fosters, the way to do business in the near future. Innovative technology coming from industry in the healthcare field and the defense arena are just two areas where I see this type of partnership bringing solid results and shared investment.
