Integrators Make A Comeback

Integrators Make A Comeback

Steve LeSueur

The big systems integrators are making a comeback ? not that they really went anywhere.

As several articles in this issue make clear, these companies lost their luster for a time as e-gov start-ups attracted both money and attention. But as the economy has begun to struggle, the larger information technology companies are finding themselves better positioned to compete and survive than many of their younger, smaller competitors.

Senior Editor Nick Wakeman tells us in a front-page article that many start-ups have abandoned as unworkable the transaction-fee business model for delivering electronic government services. Many traditional integrators, it might be remembered, had been skeptical of this approach to begin with.

In his "Market Share" column, Wall Street analyst Bill Loomis sees a turning tide for the larger systems integrators. While the integrators are not immune to economic troubles, they are weathering the downturn much better than their competitors. And the success of KPMG Consulting's initial public offering also bodes well for large IT companies, he said.

Finally, one need only read Washington Technology's special report, "Who's Who in State and Local Systems Integrators," to see that the traditional companies are still far ahead of the pack.

All the familiar acronyms and names sit atop our ranking of leading revenue producers: AMS, CSC, EDS and IBM, Lockheed Martin, Maximus, SAIC, TRW and others. Our report profiles the top integrators in the country, highlighting ongoing projects and the new business opportunities they are chasing in the $45 billion state and local government market.


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