A government industry consultant says it expects the
federal IT outsourcing market to grow by eight percent
per year from 2005 through 2010 and to grow from the
current $12.2 billion to $18 billion.
The report cites the Office of Management and Budget’s
line of business initiatives and the White House’s push
for more competitive sourcing — a prominent feature of
the president’s management agenda — as reasons for the
continued growth.
It also said that despite recent legislation requiring
vendors to prove a 10 percent or $10 million cost
savings over federal workers to win contracts, the
federal deficit, tightening federal budgets, and the
needs to supplement internal technical resources, bring
in new technology or streamline operations would also
drive outsourcing.
An impending wave of federal retirements over the next
five to ten years will also likely contribute to agencies
seeking outside help with IT, it said.
INPUT predicted more HR management, financial management,
grants management, case management, federal health
architecture, and IT security would fall to contractors.
