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.
Rahul Pandhi is the President of CollabraLink Technologies, Inc., an 8(a)/SDB certified technology consultancy that specializes in process analysis as well as integration and implementation:
2014 Market Outlook
I think that government contracting will continue to be strong, however the trend towards lower prices, lower wraps – essentially the “race to the bottom” will unfortunately continue as well. Small business need to get really smart with their indirects and will need to ensure they are cutting their pricing with a scalpel, not a butter knife.
Budget Constraints and Mergers & Acquisitions
Certainly budgets will remain constrained, and I think this is the trend for the next several years. Overall IT budgets will trim, though not so significantly that it makes the market unattractive. M&A activity will probably remain steady, though I think the purchase multiples will drag some more before bottoming out.
