Public sector outsourcing for IT support expected to rise, report says
Economic decline will lead to an increase in the public sector’s use of externally provided information technology (IT) and mission support services in the next five years, according to a survey by Houston-based EquaTerra. EquaTerra projects a 5 percent increase in spending for IT outsourcing by government agencies and non-profits, from $66 billion in 2007 to $90 billion in 2013.
The increase reflects the public sector’s struggle with budget constraints, under-funded mandates and brain drain from the coming wave of baby-boomer retirements, according to EquaTerra’s “2Q08 Public Sector IT, Business and Mission Support Service Provider Pulse Survey.” Outsourcing can include IT services provided by federal agencies to other government bodies, or through public-private partnerships, or direct third-party arrangements.
The entire report is available by contacting Stan Lepeak at