The Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia recently issued a report to the Joint Select Committee on Deficit Reduction identifying $1.4 trillion in savings over 10 years. In terms of direct impact to contractors the committee concurs with previous recommendations to cut the contractor workforce by 15% and require all agencies to provide an annual headcount of how many employees are working on federal contracts along with their specific job functions. Reducing the contractor workforce has been a consistent theme to the deficit reduction dialogue and we expect more details to unfold as we approach the January 15th deadline for the committees report.
Another recommendation, if adopted would accelerate the government’s acceptance and adoption of cloud based computing. The report recommends $200 billion in savings from closing federal computer data centers, which could only be achieved through implementation of a broad based federal cloud strategy. This certainly would lead to increased opportunities for contractors that possess the expertise and personnel to implement distributed computing architectures.
The entire report can be viewed by accessing the following link: $1.4 TRILLION IN SAVINGS
Now that the “Cloud First” model of Information Technology (“IT”) infrastructure has been tested and proven by the private sector, the U.S. Federal Government (“USG”) has begun its push into the cloud computing (“CC”) market. USG CC spending is expected to grow at a 40% Compound Annual Growth Rate (“CAGR”) between 2010 and 2015, far outpacing any other USG IT segment…
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