Skip to main content

Public Sector Agencies Prepare for Digital Transformation

While the deployment of information and communications technology (ICT) in the public sector has been negatively impacted by several years of tight budgets and limited growth, there are pockets of targeted investment that reflect the need to evolve essential government systems and applications.

The public sector IT and associated professional services market continued to improve during the third quarter of 2015 (3Q15). The nineteen vendors in the Technology Business Research (TBR) Public Sector IT Services Benchmark achieved a combined year-to-year revenue decline of -1.4 percent in 3Q15 -- however, that's a 360-basis-point improvement over 3Q14 and the best performance since 1Q13.

According to the latest TBR market assessment, six vendors actually achieved year-to-year growth during the quarter, while five others were down by less than 2 percent compared to 3Q14.

The savvy U.S. IT vendors have diversifying their portfolios, expanding into adjacent international markets and are now focusing on areas of increased government spending -- such as cyber security and healthcare.

"While acquisitions have played a major role in improving aggregate top-line performance, particularly among federally focused services pure plays, we've also noted legacy business growth among many larger players in the market," said Sebastian Lagana, senior analyst at TBR.

Government Agencies Adopting New Technologies

An aggregate backlog of $83.46 billion among the 12 federal-led vendors in 3Q15 represented growth of 6.1 percent from $78.66 billion in 2Q15, with the majority of included companies realizing backlog growth, aided in part by the budget spend at the end of the federal government fiscal year.

Growth was largely driven by services-led IT organizations, although legacy defense and aerospace vendors realized improved performance, which is indicative of positive momentum following the portfolio shaping and organizational restructuring initiatives undertaken over the past two years.

While the public sector project backlog grew sequentially for the second straight quarter, TBR analysts don't expect this trend to continue in 4Q15, as there is typically a slowdown in contract awards at the start of the new federal government fiscal year.

However, the aggregate project backlog should continue to improve against year-ago comparable periods, given a stabilizing U.S. federal budget environment, increased defense-sector IT spending and growing international demand for security-related IT capabilities and associated professional services.

TBR believes that government agencies are demonstrating an increased interest in preparing for the adoption of disruptive technologies -- such as cloud computing, digital transformation and the Internet of Things (IoT), which will also drive demand for securing strategic communication networks and rapidly growing big data applications.

Popular posts from this blog

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Robocall Mitigation Solutions to Halt Criminal Threats

If you answer the phone and hear a recorded message instead of a live person, it's likely a robocall. A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message. In 2020, the U.S. Federal Trade Commission (FTC) received 2.8 million consumer complaints about robocalls. Offering solutions to robocalling and associated fraudulent business practices, computerized mitigation platforms are an integral part of the solution. Platforms that are focused on actionable systems to disrupt unsolicited and potentially criminal phone calls help telecom service providers and industry regulators. Issues of whether one-size-fits-all developments are sufficient to be effective across the spectrum need to be addressed, and whether a single telecom network operator working unilaterally with a third-party platform could compromise desired or mandatory industry-wide standards. Robocall Mitigation Market Development According to the latest worldwide market study by Jun

Secure Digital Workspace Apps Enable the Future Enterprise

In early 2020, as the world responded to the COVID-19 pandemic disruption, many organizations were forced to rapidly transform their communications networks and IT infrastructure to support an unprecedented shift to remote work. Before the pandemic, approximately 38 percent of employees were remote full-time or had a flexible work arrangement where they split time between home and office locations. During the pandemic, the percentage of remote workers that CIOs had to support reached almost 72 percent. Future Enterprise Technology Market Development Enterprise leaders have been forced to adapt to a new state, shifting from traditional office-based operations to distributed workforce environments that must still provide the same level of connectivity, security, and efficiency across the organization. According to the latest worldwide market study by International Data Corporation (IDC), addressing connectivity across geographies and transforming networks to become more virtual and agile