2012 is here, and with it comes big changes for the Federal IT industry. WashingtonExec gave local executives the opportunity to share their thoughts on where they see the government contracting industry headed.
Today, hear Scott Friedlander’s outlook for the government contracting community in 2012.
Scott Friedlander: As we enter 2012, there are new market dynamics that federal IT contractors cannot avoid if they want to stay relevant. The fiscal complexities of the government are more difficult to predict; the global risks in cyber security are rapidly accelerating; government’s IT infrastructure is aging – while key mandates remain unfunded; and the renewed focus on multiple award contracts is impacting the competitive landscape. At the same time, the need for information technology is not slowing down by any measure.
While some would argue that these dynamics favor the larger established IT integrators, there is still great opportunity for the small-to-mid-sized companies who can properly navigate these changing waters. The successful organization will need to display deep agency domain expertise, proven performance in key capabilities, and deliver success through a thriving human-capital-based culture. Industry must tailor game-changing solutions for government using technology, process efficiency and incorporation of subject matter experts in the most seamless and productive ways possible. Industry must continue to work with government leadership to support the agency mission and understand how to leverage and lower the total cost of services performed. Government budget tightening and the trend towards multiple-award contracts will continue to bring tougher competition among government contractors. This may allow for better partnering opportunities supporting a dynamic solution for a program or project. We should continue to see an increase in M&A activity as companies work to improve their own business models and strategic direction.
Overall, companies that continue to provide fresh thinking – combining new scalable technologies with people and process change – will win their share of opportunities. It is in this new dynamic where we should keep a careful watch for companies to emerge as leaders across the key areas where government is eager for new innovations. The solutions that address real problems, meet cost/budget requirements, improve productivity, adhere to security standards, and are more efficient will ultimately win the day.
*Scott Friedlander recently interviewed with WashingtonExec on the topic of transformational leadership.