2014 – WashingtonExec Annual Market Outlook Series
As we turn the page on 2013, we look forward to a new year and new opportunities for innovation and growth in the government contracting community. This past year we experienced budget sequestration, a 16-day-long government shutdown, and a perpetually increasing focus on cyber security and healthcare IT.
WashingtonExec reached out to those most knowledgeable and experienced individuals in the federal contracting space. We asked executives in and around the beltway for insight regarding where they see the government contracting community headed in 2014. Topics discussed include M&A activity, cloud computing, healthcare IT, defense, mobility, and more.
Sal Fazzolari, Senior Vice President of Strategic Development, CRGT:
There will be an increasing emphasis on the notion of lean government – doing more with less during 2014. This emphasis will force the government to re-consider its core mission and priorities. Pressure created by having less budget monies and in some cases staffing, present a strategic opportunity for government and industry. Now is the time for government to re-consider old systems, processes and platforms that were implemented for another era. Industry too must re-consider our systems, processes and platforms to ensure that we are prepared for an increasingly competitive market.
Mergers & Acquisitions
Rather than invest in new capabilities to increase competitiveness, some firms will seek growth through acquisitions. M&A activity will definitely continue and possibly accelerate because industry has excess capacity given the expected number or procurement actions and contract awards, and some companies are unwilling to invest in increasing their own competitiveness.
Industry – Govt Collaboration
Agencies willing to embrace change and transformation will emerge stronger and leaner. Successful transformation requires having a partnership framework and open communication between government and industry – a candid exchange of ideas and knowledge. However, there are structural and regulatory barriers that exist that deter successful collaboration. These barriers will become more evident in 2014 as the government tries to do more with less.