Deltek Releases Its 13th Annual Clarity Government Contracting Industry Study, Revealing New Challenges and Opportunities Firms Face to Improve Post-Pandemic Operations and Culture

HERNDON, Va. – May 25, 2022 – Deltek, the leading global provider of software and solutions for project-based businesses, announced the release of its 13th annual Deltek Clarity Government Contracting Industry Study. The study is designed to identify current contracting trends and market outlooks, including specific analysis on top challenges impacting business development, project & risk management, finance & financial compliance, manufacturing, contract management & procurement, human capital management and information technology professionals.

Every year, Deltek analyzes survey responses from hundreds of government contracting leaders on their previous year’s performance, uncovering insights on the entire government contracting market. The resulting report is a unique and trusted resource that helps performance-minded businesses identify areas to improve operational efficiency and effectiveness, help set business goals, inform business development strategy and better understand how they compare to their competition.

This year, more than 650 government contractors responded to the survey, which comes at a key inflection point as government contracting firms emerge from the pandemic and face new challenges and opportunities to improve go-forward operations and organizational culture. Coming out of the pandemic, businesses have been seeking alternative revenue streams and have ingrained new practices, including placing a greater emphasis on strategic teaming, investments in government compliant systems, and prioritizing cybersecurity maturity for government contractors. Moving forward, companies are still navigating how to best support and secure remote and hybrid workforces, and how to overcome shortages in labor, while swiftly adapting to market complications such as supply chain issues and government mandates.

Several key themes arose from the survey that are applicable across a variety of government contracting sectors, including:

  • Business development emerged as a key investment area: One in three respondents perceived increased competition as a critical challenge in 2021.
  • Diversification into new markets was used to drive organic topline growth: 55% Respondents indicated the number of federal contracts increased in the last 12 months.
  • A critical growth area in the manufacturing sector is digital transformation: 60% Respondents cited supply chain issues as the greatest risk concern.
  • The increasing complexity of government contracting is underscoring the need for technology and contract management integration: 54% of respondents noted that their companies are actively hiring to address contract management challenges.

Kevin Plexico, Senior Vice President of Information Solutions at Deltek commented, “This year, we heard from many businesses that although 2021 was not a superb year, results moving into 2022 were surprisingly positive with increased win rates expected. The challenges companies reported include growing in headcount while facing increased competition, citing business development and digital integration of functions as key areas of growth and investment.”

The full results are now available in the report here, or watch this on-demand webinar to learn more about the study.

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