TechAmerica Foundation Forecasts Federal Defense and Civil IT Spending

WASHINGTON, Oct. 27, 2014 /PRNewswire-USNewswire/ -- The TechAmerica Foundation's Vision Federal Market Forecast projects federal budgets in line with the Bipartisan Budget Act until policy choices crystalize after 2015. TechAmerica Foundation's 50^th annual Vision Federal Market Forecast Conference runs two days starting tomorrow at the Fairview Park Marriott in Falls Church, Va.

"Despite budget pressures, the federal government remains a large potential market for companies that are fully invested in it," said Elizabeth Hyman, executive vice president, TechAmerica. "The Vision Forecast helps IT companies gain a competitive edge in the federal marketplace by gleaning valuable insight into the future of government spending."

The overall forecast sees long-term economic challenges limiting federal IT budget growth, but opportunities still exist. The civil IT budget is flat in near term, but should grow with discretionary spending. The defense IT budget faces near-term pressure with inflation-level increases over five years.

The on-book unclassified IT budget will be $73.7 billion for fiscal year 2015. Without reform measures, Social Security, Medicare, Medicaid and other mandatory expenses plus interest payments are set to rise to 79 percent of federal outlays by fiscal year 2024, leaving only a modest amount of room for discretionary expenditures.

The forecast points to three top civil agency IT issues: budget pressures, drivers for transformation and technology transitions.

"Cost savings continue to be a high priority as spending is shifted between different investment priorities," said Vision Strategic Forecast Council Chair Robert Haas. "Budget constraints are forcing agencies to limit extras and focus on IT as a commodity. Any budget uncertainty will constrain technology migration."

Haas added, "Cybersecurity concerns continue to challenge the agencies with security issues slowing the adoption of new technologies. Even in the Department of Defense, where cybersecurity has been more formalized as a mission, challenges remain. Cloud computing, mobility and information sharing still face cultural and security issues. This is where industry can assist government customers."

"A modest recovery in the top-line defense spending in fiscal year 2015 is expected due to a more complex security environment," commented Defense Vision Chair Rich Ashooh. "The continued preference for the active defense force structure will be for capability over capacity, and the potential exists for faster force structure reductions in the near- to mid-term. However, a heightened regional threat could work to increase defense spending later."

Each year, volunteers of the TechAmerica Foundation—through market research and an extensive interview process—gather, collate and analyze information for the annual Vision Federal Market Forecast. This year 25 teams, representing more than 300 industry volunteers, interviewed more than 360 government executives, industry and think tank analysts – the most interviews conducted in the 50-year history of forecast. The research process begins in April and culminates with the Vision Conference in October.

A full analysis of spending and future business opportunities within the federal market will be presented at the 50^th annual TechAmerica Foundation Vision Federal Market Forecast Conference tomorrow. To view the conference agenda, visit http://www.techamericafoundation.org/vision-agenda. Registration is available on-site, and a CD of the conference presentations is available at http://www.techamericafoundation.org/vision-cd. Results of the media briefing on the Vision Forecast are available at http://www.slideshare.net/comptia/techamerica-foundation-vision-forecast-overview.  

About TechAmerica Foundation

Launched in 1981, the TechAmerica Foundation is a 501(c)(3) non-profit, non-partisan affiliate of TechAmerica, the public sector and public advocacy department of CompTIA. The foundation disseminates award-winning industry, policy and market research covering topics such as U.S. competitiveness in a global economy, innovation in government, defense and federal IT forecasts, and technology employment and international trade indicators. It also organizes conferences and seminars, including the Vision Federal Market Forecast which was started originally by the Electronics Industry Association.

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