More Reliance on IT Contractors?

A new report suggests that federal spending on information technology will grow significantly over the next five years, and that could result in the federal government having to rely more on outside expertise in order to meet increasing demand.

The report, released Tuesday by INPUT, notes that federal spending on IT will grow from $86 billion in 2010 to $112 billion in 2015, at a compound annual growth rate of 5.4 percent. While overall federal spending growth will decrease, the report noted, the Obama administration's priorities for cost reduction and increased efficiency will undoubtedly revolve around IT programs like shared services, automated processes and cybersecurity. But as federal spending on IT increases, so will the need for IT workers, an issue that could be hampered by the gap in federal IT expertise, the study noted.

The Obama administration in July 2009 issued guidance that called on agencies to conduct pilot insourcing programs focused on one job field that potentially overrelies on contractors. At a Senate hearing in May, Daniel Gordon, administrator for federal procurement policy at the Office of Management and Budget, noted that more than half of federal agencies had identified acquisition and information technology jobs for their pilot programs.

But INPUT's research suggests that the increased demand for IT services will make it more difficult for government to grow its workforce to a degree required to significantly reduce its reliance on contractors, particularly as agencies work to fulfill more requirements using fewer resources.