Tony Moraco, CEO of Science Applications International Corp., has said federal civilian agencies have begun to suspend technology updates in response to the Trump administration’s proposed fiscal 2018 budget cuts to fund increases in defense and homeland security spending, FCW reported Friday.
“The federal civilian customers have reacted to the rhetoric around reductions in that part of the federal government, as we’ve seen the promotion of spending in the defense and intelligence sector, given the national security interest,” Moraco told analysts at an earnings call Thursday.
“So, we’re seeing the program managers and contract administrators reacting to that and protecting their budget lines with an indication that they may be lower than they have been in the past.”
Moraco, an inductee into Executive Mosaic‘s Wash100 for 2017, said the demand for IT modernization, cybersecurity and cloud platforms remains high among agencies.
“So as we look at it, whether it be through executive order or through government compliance, there is continual demand to upgrade legacy systems,” he added.