2014 Market Outlook: Unisys Federal Systems’ Ted Davies Notes Shift to the Cloud, Predicts Move Away from LPTA

Ted Davies, Unisys

Ted Davies, Unisys Federal Systems

WashingtonExec 2014 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.

Ted Davies is the Senior Vice President and President of Unisys Federal Systems:

I see a few acquisition trends coming forward in 2014. The federal IT acquisition workforce will be challenged in the coming year to meet pent up demand for contract awards as improved budget stability allows agencies to proceed with IT procurements. Look for a real crunch in the summer as the government’s fiscal year winds down.

I also think we could see the pendulum begin to swing away from low price/technically acceptable (LPTA) buys for non-commodity IT over the next year as agencies begin to realize that even though they may get the lowest initial price with an LPTA acquisition, their ability to get a quality solution on time is often compromised.

Also, 2014 will bring a significant shift to the cloud. Agencies will continue to find the associated cost savings and improvements in service too attractive to pass up. This move will free up budget to make mission-critical investments.

Lastly, security and privacy risks will be managed through increased encryption inside and outside agency data centers.



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