Outsourcing Deals Swell Small Players' Coffers, Too

As the nation's largest systems integrators rush to bid on outsourcing contracts hovering around $1 billion, several companies are making big inroads in the state and local arena on a much smaller scale.Systems and Computer Technology Corp., Malvern, Pa., and Affiliated Computer Services Inc., Dallas, are two such companies making a killing in the outsourcing market in America's smaller cities and counties.Washington Technology Staff Writer Steve LeSueur traces the efforts of these companies to snare steady business from state and local officials and cash in on the long-awaited boom in government outsourcing.Learn about the success these companies have found as they capture 85 percent to 90 percent of an estimated $120 million market, and add one to three customers annually. As one industry expert put it, "This is one of the true untapped markets among state and local governments." Don't miss our story on Anteon Corp.'s latest find in the federal services market. The Fairfax, Va., company, whose majority shareholder is Caxton-Iseman Capital Inc. of New York, plans to acquire Analysis & Technology Inc., a North Stonington, Conn., company that provides engineering and technology services to defense and intelligence agencies.Losing out to Anteon were Affiliated Computer Services, DynCorp and Titan Corp., sources tell Staff Writer Nick Wakeman, who covers the systems integrator beat for Washington Technology.Anteon's move, which follows earlier roll-ups that have been on the rise in the federal market during the last several years, and the keen interest among integrators in Analysis & Technology are further proof that the consolidation trend is not waning.In fact, the way the economy keeps popping, there's a good chance you'll read about another roll-up or major government contracting deal in our next issue.XXXSPLITXXX-