Overall government IT spending will take a significant hit from COVID-19; growth opportunities will eventually arise but on a longer-term horizon Public sector market growth drivers State and local governments in the U.S. as well as civilian agencies of international governments saw significant disruption to tax revenues and their ability to provide even basic levels […]
State and local governments in the U.S. as well as civilian agencies of international governments saw significant disruption to tax revenues and their ability to provide even basic levels of citizen-facing services as a result of the pandemic. Employment services agencies, for example, were suddenly forced to operate at sharply lower levels, if at all, […]
The impact of COVID-19 on revenue, profitability and award activity was material but also erratic and inconsistent across vendors Federal IT vendors tracked in TBR’s Public Sector IT Services Benchmark generally reported at least some erosion of top-line growth or profitability in CY2Q20 that was directly or indirectly attributable to the pandemic. Many providers were […]
The predominance of the U.S. federal market is on display in Figure 1 as most of the observed deceleration owes to the diminishing impact of strategic acquisitions made by federal IT vendors prior to 2019 and the sharp slowdown in overall M&A through 1Q20. The latter trend will be exacerbated by the coronavirus outbreak as […]
Despite the inevitable short-term impact of COVID-19 on federal technology outlays, IT infrastructure modernization will eventually return to the top of the list of federal IT spending priorities. The pandemic has disrupted award activity and contract delivery while creating resource deployment challenges at federal IT vendors and their agency clients. While the pandemic will cause […]
COVID-19 will accelerate a range of secular trends in federal IT Despite the inevitable short-term impact of COVID-19 on federal technology outlays, IT infrastructure modernization will eventually return to the top of the list of federal IT spending priorities, as will investments in cybersecurity, analytics, AI, big data, cloud and machine learning. The epidemic will […]
Uncertainty underpins the short- and long-term outlook for the impact of the coronavirus pandemic on the federal IT space. Federal agencies and their IT contractors face disruptions across their supply chains, operations, procurement functions and fiscal management. Near-term turbulence is inevitable Defense majors Northrop Grumman and General Dynamics, on March 19 and March 23, respectively, […]
In our new weekly blog series Two Back, Three Forward, we look at two numbers in TBR reports from the prior week as well as three numbers from our upcoming reports, highlighting the analysis TBR provides and the vast amount of data — the numbers — we’re working with every day. It’s all about the […]
Defense, intelligence and civilian agencies are accelerating modernization efforts in 2020. M&A activity in the market will also remain at a brisk pace. “Leidos released its 4Q19 and 2019 fiscal results on Feb. 18, posting 4Q19 revenue growth of 11.6% year-to-year to $2.95 billion on the back of strong bookings and backlog growth throughout 2019 as […]
This week, TBR publishes the first Digital Transformation Insights report for 2020, building on the 2019 series, which included analysis around blockchain, digital marketing, IoT and quantum. The first report centers on IT services vendors’ strategies and performances within their analytics practices. Senior Analyst Boz Hristov notes that, “The maturing A&I services market continues to […]