Report: Outsourcing to boom

Federal spending on information technology outsourcing services will increase from $6.6 billion in fiscal 2002 to nearly $15 billion by fiscal 2007, a compound annual growth rate of 18 percent, according to a report released by Input Inc., the Chantilly, Va., market research firm.

Pressures to compete nongovernmental activities and difficulty retaining and replacing qualified technical and program management personnel are driving the increase, said Payton Smith, manager of public-sector market analysis services. Legislative obstacles to outsourcing that arose at the end of 2001 largely disappeared in 2002.

"Even though the subject remains politically sensitive, Input expects that the new congressional leadership will foster a generally favorable atmosphere for outsourcing vendors in 2003," Smith said.


Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above.

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.


contracts DB