IT Modernization, Cybersecurity and Defense Readiness Will Sustain Federal IT Spending, According to Deltek Report

New Deltek GovWin IQ report predicts modest IT spending growth as agencies balance new priorities and budget restraints against emerging technology needs

HERNDON, Va. – September 29, 2017 – According to a recent report, Deltek forecasts federal IT spending of $99.5B in FY 2017, increasing to $104.9B by FY 2022. While key technology and acquisition leadership positions remain vacant, the Trump Administration’s IT policy and management agenda is starting to take shape. The Administration carries over the Obama Administration’s focus on modernization to sunset expensive legacy systems and emphasis on improving cybersecurity and adopting cost saving technologies, like cloud computing. However, a significant shift is occurring toward investment in national defense and homeland security related agencies.

Deltek’s report, “Federal Information Technology Market, 2017-2022” forecasts contractor-addressable federal IT budgets for hardware, software, IT professional services, IT outsourcing, and communications and network services. Federal agencies acting as health care payers, promoters and providers such as such as the Defense Health Agency and Veterans Affairs will continue to invest in technologies and solutions to improve health outcomes and reduce waste, fraud and abuse. The Defense Health Agency’s worldwide implementation of a new electronic health records system and the Department of Veterans Affairs’ creation of an entire digital health platform will continue to sustain spending in the federal health IT market.


  • Budget Environment – The FY 2018 budget request – the first proposed budget by the Trump Administration – indicates the willingness to increase defense funding, albeit at the expense of some civilian agencies. Sequestration caps will likely be renegotiated, either through the end of the originally planned timeframe (through FY 2021), or for another two-year period (FY 2018 and FY 2019).
  • New Administration – The new administration has started to reset IT policy, but primary priorities carry the same themes under different branding. Some IT policies are set for repeal, which may free up resources and speed acquisitions.
  • Legacy System Modernization – A centralized IT working capital fund via the creation of a Technology Modernization Fund or the passage of the Modernizing Government Technology (MGT) Act would speed modernization efforts significantly, however agencies must drive tangible cost savings to ensure the ongoing viability of the fund.
  • Priority Areas Unchanged – Growth opportunities remain in key strategic areas such as: cloud computing, data center optimization, cybersecurity, big data and infrastructure modernization.
  • Agency Reorganization and Reform – The Trump Administration’s executive order directing enterprise-wide assessment of operational processes and workforce balance will likely uncover both opportunities and challenges for contractors.


“The Trump Administration has begun to lay the groundwork for an IT reform agenda that could both drive and inhibit IT spending. That agenda relies largely on IT infrastructure modernization, so whatever form a centralized modernization fund takes – whether via the Modernizing Government Act or the Technology Modernization Fund proposed in the FY 2018 budget – it will be critical to moving agencies forward in everything from cloud and cybersecurity to analytics and automation.”

Deniece Peterson, Director, Federal Market Analysis, Deltek

“All signs point to increased defense spending over the next several years, but the scope of any sustained increases will depend on two major issues: Congress’ ability to address sequestration, and its ability to negotiate the likely diverging growth paths between defense and civilian agency budgets.”

John Slye, Advisory Research Analyst, Deltek

For more information on GovWin IQ and this report, visit or download a free summary here. The full report is free to subscribers of GovWin’s Federal Market Analysis program. Press interviews can be arranged by contacting Lauran Cacciatori.

About Deltek

Deltek is the leading global provider of enterprise software and solutions for government contractors, professional services firms and other project-based businesses. For decades, we have delivered actionable insight that empowers our customers to unlock their business potential. 22,000 organizations and millions of users in over 80 countries around the world rely on Deltek to research and identify opportunities, win new business, recruit and develop talent, optimize resources, streamline operations and deliver more profitable projects. Deltek – Know more. Do more.® 

For further information contact:

Lauran Cacciatori
Vice President, Corporate Marketing and Communications Deltek
+1 703.885.9947