Scott Friedlander’s Outlook: 2013 Valuation, New Players & Technology Adoption

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Scott Friedlander, Paragon

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.

Scott Friedlander, President and CEO of Paragon Technology Group, spoke with us about three key trends he sees playing out in the new year. It was just around this time last year that Friedlander’s Paragon was acquired by LLR Partners.

“I predict that we will see the following trends play out in 2013:

·       Continued Consolidation – M&A activity will continue at a steady pace and may even heat up in the early half of 2013. Valuations will remain attractive for buyers, as 2012 saw valuations dip to historic industry lows.  Competition will be high in the areas that have been gaining steam in government, including cloud services, mobility, healthcare and data analytics.

·        New Players Emerge – Expect to see a handful of mid-sized companies emerge as larger players in the market, as their speed-to-market and mission focus allows them to create leaner customer value and be more aggressive on acquisition targets.

·       Technology Adoption – The fiscal challenges could slow down Government’s adoption of new technologies in the short term. However, similar to the commercial space, we expect Government will follow Gartner’s IT predictions with 2013 seeing trends moving towards security and storage management opportunities. Big data analytics, data integration, and data quality management will start to gain significant traction in 2014.

Overall, the government market will continue to be one of the largest IT markets in the world and will provide opportunities for companies that can innovate and drive customer value.”


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