TBR’s Business Insights

DOGE Federal IT Vendor Impact Series: Maximus

06.11.25

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.

Technology Business Research, Inc.

DOGE Federal IT Vendor Impact Series: ICF International

06.11.25

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.

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Atos Is Starting to Regain Client Trust and Develop Commercial Opportunities That Will Generate Revenue in 2025

06.06.25

After years of instability and declining performance, Atos enters 2025 with new leadership, improved liquidity and early signs of commercial momentum, positioning the company for gradual recovery and long-term stabilization.

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Oracle Strategy: Large Backlog and New Government Contracts Boost Vendor’s Long-term Outlook

06.05.25

Oracle’s current business strategy centers on streamlining customer success efforts, enhancing partner collaboration, and expanding multicloud infrastructure. By consolidating its services under the Oracle Customer Success Services (CSS) umbrella, the company has improved life cycle support for clients, reduced overlap with systems integrators, and equipped partners with tools like the Cloud Success Navigator to enhance implementation and renewal outcomes.

Technology Business Research, Inc.

DOGE Federal IT Vendor Impact Series: Booz Allen Hamilton

05.30.25

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.

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GenAI Reshapes IT Services Talent Strategy as Vendors Balance Innovation, Ecosystem Alignment and Economic Headwinds

05.20.25

In the short-to-mid-term, TBR expects generative AI (GenAI)-specific training to become a standard part of an IT services or consulting professional’s basic tool kit, with specialized training around technology partners’ solutions or a company’s own IP and platforms reserved for those professionals dedicated to AI roles. While some may argue every role is an AI role, the near-term reality is that only a select few among the broader professional services talent base will need specialized training, and the associated budgets will decrease in the coming years.

Technology Business Research, Inc.

DOGE Federal IT Vendor Impact Series: Leidos

05.20.25

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.

Technology Business Research, Inc.

DOGE Federal IT Vendor Impact Series: CGI Federal

05.19.25

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.

Technology Business Research, Inc.

DOGE Federal IT Vendor Impact Series: General Dynamics Technologies

05.07.25

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.

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Robots Protecting Themselves From Robots: The Future of AI Security and Vendor Differentiation

02.03.25/by Bozhidar Hristov, Principal Analyst

Demand for analytics services has reached an inflection point, with new opportunities around the development and implementation of secure, industry-aligned agentic AI solutions refueling growth.

B2B Strategic Advantage: Ecosystem Intelligence

01.31.25/by Patrick Heffernan, Practice Manager and Principal Analyst

Vendor consolidation and enterprise optimization of existing digital stacks have compelled IT services companies and consultancies as well as their ecosystem partners to think strategically about who to partner with and how to secure and expand their position within the ecosystem. As a result, aligning business priorities with alliance partners will allow IT services companies and consultancies to develop a more empathetic approach to technology-fatigued buyers. Additionally, understanding pricing and commercial structures backed by common knowledge management programs will elevate the value of joint services and appeal to enterprise buyers’ appreciation of a separation of labor, supported by greater transparency and accountability.

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KPMG Shifts Focus to Legal Services and AI-driven Strategy Consulting

01.28.25/by Bozhidar Hristov, Principal Analyst

Earlier in January news reports surfaced that a subsidiary of KPMG, KPMG Law US, had applied to operate in Arizona under a state program allowing nonlawyers to operate law firms and provide legal services in the state. KPMG is leaning toward legal services and AI-infused strategy consulting offerings to bolster sales as the firm navigates choppy market conditions within core deal advisory.

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Infosys’ Future: Scaling GenAI and SLM Innovation to Drive Growth and Stakeholder Trust

01.21.25/by Bozhidar Hristov, Principal Analyst

Developing a client-ready AI-first portfolio is not a strategy unique to Infosys, but keeping pace with the rapidly evolving generative AI (GenAI) market highlights the company’s appetite for innovation and helps it strengthen stakeholder trust. Over the past 24 months, a large portion of vendor-client discussions focused on experimenting with developing and running large language models (LLMs), often fed with either public or nonessential data. Growing adoption of the technology has introduced the need for developing SLMs that are either function or industry specific.

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What Spectrum Will 6G Use?

01.13.25/by Chris Antlitz, Principal Analyst

The telecom industry continues to struggle with realizing new revenue and deriving ROI from 5G, even after five years of market development. TBR continues to see no solution to this persistent challenge, and with no catalyst on the horizon to change the situation, CSPs’ appetite for and scope of investment in 6G will likely be limited.

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AI Agents: What Are They, and How Will They Impact the AI PC Space in 2025?

01.09.25/by Alek Maxfield, Research Analyst

Over the past several quarters, OEMs have focused on incorporating local AI-powered features into their new PC releases, with initial neural processing unit (NPU)-enabled use cases leveraging AI to further enhance collaboration experiences and extend battery life. However, AI agents take the NPU’s functionality a step further, combining the capabilities of large language models (LLMs) with other resources to partially or fully automate a wide range of tasks, including responding to emails, booking hotel stays, or opening and closing IT help desk tickets.

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AI Buzz Sparks IT Infrastructure Shifts, but Privacy and Strategic Challenges Are Impacting Adoption

12.20.24/by Ben Carbonneau, Senior Data Analyst

The industry enthusiasm surrounding AI has quickly led to shifts in organizations’ strategic priorities and expected investments such as demand for servers. Despite the hype, few organizations have operationalized GenAI to date. Instead, most are focused on overcoming initial barriers to adoption, including understanding the business implications of this new technology frontier.

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GenAI, IT Modernization and Strategic M&A Drive Infrastructure as a Service and Platform as a Service Growth

12.19.24/by Catie Merrill, Senior Analyst

Top hyperscalers Amazon Web Services (AWS) and Microsoft are capturing legacy Oracle and SAP workloads as customers continue to migrate to the cloud to not only outsource their IT operations but also drive lasting business value. Though the geopolitical outlook is increasingly uncertain, we expect customers will continue to prioritize more traditional “lift and shift” migrations, and steps vendors are taking to deliver more integrated solutions could help.

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Harnessing AI and Automation in Business Process Outsourcing to Drive Growth Amid Shifting Buyer Priorities

12.13.24/by Kelly Lesiczka, Senior Analyst

Vendors’ business process outsourcing (BPO) businesses continue to benefit from the ongoing shift in buyer priorities from innovation and growth toward business resiliency and optimization. Buyers are investing in automating business processes to free up costs, providing pathways to growth for vendors with AI-powered and platform-based offerings.

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Emerging Consultancy Trends: Talent Management and Innovation in the Spotlight

12.12.24/by Patrick Heffernan, Practice Manager and Principal Analyst

Technology continues to threaten the nature of consulting engagements, requiring consultancies to showcase value and deliver on outcomes. Greater investment in talent frameworks, structure and skill will equip staff to lead client discussions and effectively leverage technology to assist workflows. Partnerships remain a core piece of the technology integration, bringing in new expertise and go-to-market opportunities that enable consultancies to meet a wider variety of client needs. Client retention remains a priority across consultancies but will require the firms to effectively deliver value through services.

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