A new Deltek report indicates the federal information technology market presents challenges as well as opportunities for contractors, the Washington Post reported Monday.
Deniece Peterson, research director at Deltek, writes budget cuts have caused agencies to curtail advisory and management support contracts during the past two years.
Government investments in cybersecurity, intelligence, cloud computing and data center infrastructure could buoy the services contracting sector, Peterson writes.
The research firm predicts IT outsourcing services will grow from a $26 billion market in fiscal 2013 to $26.7 billion in fiscal 2018.
Deltek believes IT professional services providers will have opportunities in areas such as systems integration, consulting and design, software development and technical education.