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 insight comes from Robin Lineberger, CEO of Federal Government Services at Deloitte.
“On the surface, it appears federal agencies have sailed into some rough water. Reduced budgets and increasing workloads have sent agencies searching for ways to maximize resources while continuing to operate as normal.
The federal government is tightening its belt and contractors should expect to feel it too. With that in mind, to steal a phrase from former NASA Flight Director Gene Kranz, I believe this will be our finest hour. For agencies and contractors who share the same values, commitment, and thirst for finding new ways to do what they need to do, the results could be extraordinary.
In a time of anemic economic growth, there is a great federal transformation taking place. Federal agency services are, and will continue to be, in high demand. Agencies are being challenged to adopt new thinking and find creative approaches to go beyond optimization to create real results and lasting change.
Deloitte believes the federal market is segmenting into two areas: a) Value quality and b) low cost/commodity. It’s likely that the value/quality market will increase in demand as the government learns how to cope with the reduced budgets and to accomplish an increasing workload with fewer dollars. Shrinking budgets also mean fewer opportunities and fiercer competition within the contractor market. However there are great opportunities still present.
Professional services must offer efficiency in executing missions. That means increased collaboration and coordination within the government, and contractor services. On the whole, federal contractors that differentiate themselves through innovative restructuring, cost management and service delivery models over the next three to five years are in a position to help the federal government identify opportunities to enhance performance outcomes and achieve their agency mission.”
Find Robin Lineberger’s “Secrets to Success” here.