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.
Stan Soloway, President & CEO of Professional Services Council (PSC), gave us his outlook for the year 2013:
“On some levels it is easy to predict what will dominate the federal professional and information technology services market in 2013. Continued budget instability will perpetuate the uncertainty dominating the market, which means that companies will continue to be conservative in their investments and in searching for smart ways to shave internal costs. In addition, we expect other effects to emerge:
- At least one, possibly more, additional periods of incremental funding, as Congress and the administration battle over long-term fiscal policy. As a result, agency operations will face unprecedented challenges in meeting even high-priority mission requirements across the board. The short funding cycles will also inhibit agencies from making the best strategic decisions as they seek to meet their budget reduction targets, meaning the cuts will be largely across the board and more indiscriminate than they should be.
- The mergers and acquisition (M&A) market will chug along with a series of smaller, tactical deals. Occasional, more significant action involving firms with strong positions in high-priority market segments—such as cyber, analytics, and big data—are also likely, but a lot of otherwise active players may opt to protect their cash.”
