Study: Desktop services to increase federal outsourcing

Desktop services, including seat management-style contracting, are likely to drive the growth of outsourcing at federal agencies over the next five years, according to a study released yesterday.

All areas of outsourcing services are expected to grow in the federal market, taking the outsourcing market to a projected $3.2 billion in 1999 from $2.3 billion in fiscal 1998, according to Input Government Services, which conducted the survey. Desktop services top the list at 7.4 percent.

The federal government still spends less on desktop services than the commercial sector does. Input projects the federal government to spend $246 million in fiscal 1999 compared with $35 billion in 1998 in the commercial market.

But desktop outsourcing contracts at NASA and the General Services Administration will have an effect on the entire government. The Outsourcing Desktop Initiative at NASA and GSA's Seat Management contract are expected to increase the interest in outsourcing hardware, software and services for the desktop, according to the report.

Other areas considered part of the federal outsourcing market by Input include business operations, application management, network management, applications operations and platform operations.