Feds to Cut Contracting Dollars, Though IT May Keep Growing

Though the federal
government’s planning to cut back on contract spending, IT won’t be hit as
hard as other sectors. The research firm
FedSources says the administration’s proposed budget will pare contract
spending
by $36 billion through 2011. But:

The
IT portion of the contracted-out budget is a bit brighter, with a compound
annual growth rate of 2.9 percent expected from 2009 through 2014, (Ray)
Bjorklund
(FedSources’ senior vice president and chief knowledge officer) said.
Contracted IT spending should rise from $73.4 billion in 2009 to $80.4 billion
in 2014, he said.

Still, it’s a good
idea to pay attention to new spending priorities.

The
budget picture will change the competitive environment, Bjorklund said, and
companies need to think about how their corporate goals and strategies align
with the Obama administration¿s priorities.

The
fiscal 2011 budget proposal puts more emphasis on job creation, working
families and the so-called Main Street economy, he said.

– Mark Feffer

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