WashingtonExec 2013 Government Contracting Outlook Series:
The new year brings big changes for the Federal IT industry, and WashingtonExec is back with its Government Contracting Industry Outlook Series.
We are giving local executives the opportunity to share their thoughts on where they see our industry headed this year and beyond. Leaders were asked a series of questions focused on cloud computing, healthcare IT, defense, mobility, and more.
Bobbie Kilberg, President & CEO of Northern Virginia Technology Council (NVTC), spoke with us about her 2013 predictions:
“Everyone agrees that 2013 will bring belt-tightening throughout our region. Small and mid-size federal contractors will be most affected by the reduction in federal spending, due to their inability to wait out the government’s budget cuts and the lack of available capital to carry them over. Government cuts, particularly with the focus on lowest cost technically acceptable bids, will have a negative impact on innovation.
However, there will be some growth areas in the fields of intelligence, cybersecurity, healthcare IT, data storage and analytics, cloud computing, smart energy, cost efficiencies and mobility. But the reality is that competition in those areas will be fierce as every contractor tries to shift its focus to these growth sectors. Therefore, many of our contractors will need to place more emphasis on attracting private sector customers.
Activity in the M&A market will be limited and some companies may look to sell off specialized assets and business units to concentrate on core markets and priorities.
As was the case after the dot-com bubble burst, we expect companies in the region to continue to look to organizations like the Northern Virginia Technology Council (NVTC) for community, networking and support.”
