Deniece Peterson, senior director of federal market analysis at Deltek, said she believes mergers and acquisitions driven by federal information technology modernization efforts will continue in response to agencies’ demand for new tech platforms, the Washington Business Journal reported Monday.
“I would definitely say that having those capabilities, that’s a smart bet in my personal opinion,” Peterson said. “Because that’s where all of the agencies are headed.”
She noted that Deltek predicts a more gradual increase in federal spending on commercial IT products and services as agencies emerge from the COVID-19 pandemic. The company estimates a compound annual growth rate of 0.8 percent for federal IT spending, increasing from $118.1 billion in fiscal year 2021 to $119.9 billion in FY 2023.
“The Covid [funding] boost created this artificial influx for the particular years that we are looking at,” said Peterson. “When we look at the years in our forecast period, it looks flatter than it is” due to “extra spending” in FY 2021.
“We kind of look at it both ways: How does this fit into the environment we were seeing before Covid?” she said. “How much of that Covid influence will remain in place now that the initial boom has kind of passed?”
Peterson cited how the pandemic has helped speed up the federal acquisition process and shared her insights on the Department of Defense’s Cybersecurity Maturity Model Certification program.