Entries by John Caucis, Senior Analyst

Well-placed Investments in Emerging Tech Will Enable CGI to Accelerate Growth Long Term

/by

TBR believes CGI’s coinnovation with clients will create new opportunities tailored to industry needs; however, at the same time, other vendors in the past year have been leveraging partnerships to expand market share and provide industry-specific solutions. For example, Cognizant and ServiceNow expanded their partnership to reach midmarket banking clients, and Accenture is collaborating with S&P Global to jointly pursue financial services clients. Joint offerings may motivate clients to invest in these solutions rather than only implementing AI into existing solutions.

DOGE Federal IT Vendor Impact Series: Maximus

/by

Partnerships will be integral as vendors across the federal IT market look to quickly demonstrate their value to the new administration. While Maximus has historically been quiet regarding its alliance activity, this could change as the vendor aims to avoid falling behind. For example, Maximus recently announced a partnership with Salesforce to augment its CX as a Service efforts. The Maximus Total Experience Management solution is being augmented with the Agentforce platform to provide clients with AI agents tailored to their needs that use data to adapt to citizens’ needs and simplify interactions.

DOGE Federal IT Vendor Impact Series: ICF International

/by

TBR anticipates ICF will also explore ways to make its IT modernization and digital transformation work more agile while increasingly booking these types of engagements as fixed-price, outcome-based contracts, given the Trump administration’s preference for this contracting method. At least 50% of ICF’s IT modernization and digital transformation engagements are already fixed-price, outcome-based contracts.

DOGE Federal IT Vendor Impact Series: Booz Allen Hamilton

/by

The disruption that has very suddenly overtaken BAH’s civil business has prompted the firm to craft what Rozanski called a “one-time reset” of its civilian operations, including a 7% reduction in global headcount (about 2,500 employees) in 2Q25 that will disproportionately impact BAH’s civilian operations. The decline in civilian award activity has been so abrupt that BAH has not been able to sufficiently redeploy civilian project staff to DOD, IC or commercial sector programs, despite the firm’s expectations that growth will continue in its DOD and IC units in FY26.

DOGE Federal IT Vendor Impact Series: Leidos

/by

In FY25 Leidos will tout its mission-critical solutions to enhance outcomes quickly, cost-effectively and at scale for federal agencies. Leidos will accelerate efforts to draw closer to its federal clients, emphasizing how they can more effectively utilize the company’s delivery scale and depth of mission expertise to comply with DOGE’s mandates, the overarching IT objectives of the Trump administration and the enduring need to modernize federal technology infrastructures.

DOGE Federal IT Vendor Impact Series: CGI Federal

/by

CGI Federal is confident it can adapt to outcome-focused contracting in federal IT but is uncertain how quickly the transition can be completed. CGI Federal has been a perennial margin leader in TBR’s Federal IT Services Benchmark due to its traction with its ever-expanding suite of homespun intellectual property (IP)-based offerings like Sunflower and Momentum, and demand for these offerings will at least endure, but likely increase, under DOGE.

DOGE Federal IT Vendor Impact Series: General Dynamics Technologies

/by

GDT is not going to give up on the federal health market or on consulting, but TBR anticipates the vendor will increasingly prioritize defense opportunities in the interim, such as a recently awarded contract worth up to $5.6 billion to manage the DOD’s Mission Partner Environment. The DOD has historically been GDT’s largest client and was responsible for more than 58% of its revenue in 1Q25. While the Trump administration is asking for a 23% reduction in nondefense discretionary funding in its FFY26 budget proposal, it wants to keep the DOD’s discretionary spending roughly on par with the $892.5 billion stopgap for FFY25. GDIT is well positioned to capitalize on the DOD becoming increasingly interested in emerging technologies, given its experience with fixed-price and outcome-based contracting.

DOGE Federal IT Vendor Impact Series: IBM Federal

/by

CACI believes demand will remain strong through the remainder of its FY25 and into its FY26 for technologies and capabilities at the core of the company’s portfolio. Uninterrupted sales growth and consistent margin performance indicate CACI’s offerings remain well aligned to the Trump administration’s IT investment priorities, particularly as the new administration prepares to expand investment in cybersecurity, national security and national defense, and advanced space-based communications systems for defense, intelligence and civil applications. CACI executives also noted that the federal budget environment is slowly becoming more constructive and more transparent, a positive harbinger for CACI and its fellow federal IT contractors.

DOGE Federal IT Vendor Impact Series: CACI

/by

CACI believes demand will remain strong through the remainder of its FY25 and into its FY26 for technologies and capabilities at the core of the company’s portfolio. Uninterrupted sales growth and consistent margin performance indicate CACI’s offerings remain well aligned to the Trump administration’s IT investment priorities, particularly as the new administration prepares to expand investment in cybersecurity, national security and national defense, and advanced space-based communications systems for defense, intelligence and civil applications. CACI executives also noted that the federal budget environment is slowly becoming more constructive and more transparent, a positive harbinger for CACI and its fellow federal IT contractors.