Page 78 - FCW, March/April 2018

BackStory
How contractors see
today’s federal IT
INSIDER REPORT 2018
INSIDER REPORT 2018
INSIDER REPORT 2018
According to Washington Technology’s 2018 Contractor Con dence Index, industry is
The best place to start is to look at whether respondents expect their company’s revenue to grow.
As you’ll see in the chart, a very strong majority (63.2 percent) said that their company’s revenue will grow in the coming year. Less than 10 percent feel revenue will shrink. A signi cant portion (21.7 percent), however, feels that revenue will stay the same.
rst quarter of 2016, ue would fall, and
pward and as the
he
Unsure
6.1%
increasingly bullish on the federal IT market, but there are questions and concerns that
could temper that optimism.
With this version of the Contractor Con dence Index we have expanded our set of questions
With this version of the Contractor Con dence Index we have expanded our set of questions
and are taking a deeper dive into what respondents see as the major trends and opportunities
in the market.
Index shows growing con dence
INSEREPOT218
and are taking a deeper dive into what respondents see as the major trends and opportunities
Growth Expectations
Index shows growing con dence
...and most rms are 29.2 percpentrsaeiddit wioculdtsitany thge samge.rowth...
2016 also
current survey results indicate that trend has continued.
Compared to two years ago, expectations are much higher today. In the
less tha
th
rn
ought reven
n half
(49
.7 p
erce
nt) ex
pec
ted
gro
wth
,
13.7 p
erce
nt
wa
s
the
yea
r
wh
e
n
the
mark
et s
ta
rted
to tu
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er so slightly u
ID
R
R
0
Do you expect your company’s revenue
Do you expect your company’s revenue to grow in t tnoexgtr1o2wmointhtsh?enext12months?
2015 2015
2017 2017 2017 2017 Q2 Q3
2018 2018 Q1
CuQs1tomeQ2r ChaQ3llengQe4s Q1 Q3 Q1
Q1 Q2 Q3 Q4 Q1 Q3 Q1 Q2 Q3 Q1
Not surprisingly budget uncertainty and spending cuts is far and away the biggest challenge that contractors believe their customers face but at more than 20 percent procurement and
In this report we’ll explore industry views on IT modernization, emerging technologies and
Grow
63.2%
Stay the same
21.7%
2015 2015 2016 2016 2017 2015 2015 2015 2015 2016 2016 2017
In this report we’ll explore industry views on IT modernization, emerging technologies and
acquisitions processes also are seen as a challenge. And in a sign of the times under the Trump
mergers and acquisitions as well as views on hiring and investments over the coming years.
mergers and acquisitions as well as views on hiring and investments over the coming years.
Administration, a lack of permanent senior leadership and missing political appointees is seen
Shrink
9.1%
Because we have conducted our Contractor Con dence Index survey multiple times, we’ll also
Because we have conducted our Contractor Con dence Index survey multiple times, we’ll also
as the biggest challenge by nearly 12 percent of contractors.
compare today’s results with previous surveys.
compare today’s results with previous surveys.
But all of the challenges represent opportunities for contractors to help and s
What do you see as your customers biggest challenges?
upport their customers.
...but agency challenges haven’t eased...
What do you see as your customers’ biggest challenges?
Lack of permanent senior leadership and missing political appointees
Budget uncertainty and spending cuts
Keeping up with technology
Mission tempo
Procurement and acquisition processes
32.2%
said their customers
are utterly unaware of the Modernizing Government Technology Act’s funding provisions.
4
4
in the market.
Con dence rebounds...
0 5 10 15 20 25 30 35 40 45 50
45.6%
5
...and some key messages aren’t sticking:
11.8%
16.7%
5.4%
20.6%
This data is drawn from Washington Technology’s most recent Insider Report. The full study is available to WT Insiders at WashingtonTechnology.com.
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