Federal Outsourcing Grows


Tekrati reports on an INPUT report that says IT outsourcing will be one of "the fastest growing federal IT market segments over the next five years":

A new INPUT market forecast predicts U.S. federal government spending on IT outsourcing will grow from $11.7 billion in FY04 to $17.4 billion in FY 2009, representing a compound annual growth rate of 8.3 percent. The analysts expect BPO to lead the category.

A primary driver, according to the research, is the "fact that a significant percentage of federal IT personnel is reaching retirement age, leaving the federal government with little choice but to pursue outsourcing as a means to address a workforce shortage." [What about a massive national skills retraining program that would put unemployed service professionals to work instead? But I digress… — Ed.]

You can access the executive summary here.