“Small businesses obligations were bigger than ever in the information technology market last fiscal year.”
“This week’s This Is IT offers five takeaways in five charts to provide insights into how agencies are distributing IT obligations to small businesses. That includes agencies awarding the most obligations to small businesses, IT submarkets with the largest small business representation, and what to expect in fiscal 2021.”1. Small Business Obligations Increase, Share Remains Consistent
“Agencies obligated $26.2 billion in IT work to small businesses in fiscal 2020, up from $23.8 billion in fiscal 2019. Those increases follow suit with the rise in obligations for the entire IT market, so small business obligations have hovered around 36% of the IT market…”
- Select Agencies Drive Growth
“The top agencies by small business contract obligations in fiscal 2020 are DOD, HHS, and the departments of Veterans Affairs, Homeland Security, and Treasury. If DOD bureaus are itemized, the Air Force, Navy, Army, and Defense Information Systems Agency (DISA) all fall in the top 12 organizations based on small business IT obligations…”
- IT Outsourcing Outpaces All Submarkets
“GSA’s category management IT submarkets show agencies buy a similar amount of IT consulting from small businesses as compared to large and that small businesses are an important part of IT outsourcing, hardware, and software market categories. Most significantly, agencies spent $43.6 billion on IT outsourcing in fiscal 2020, with $14.8 billion going to small businesses. That also means more than half of small business IT spending was for outsourcing…”
- Cloud, Cyber Data Analytics Spend Flourishes
“BGOV market definitions, those that are analyst-defined, show small businesses are a large portion of the cloud services market, with nearly half the market’s fiscal 2020 obligations. Agencies also relied heavily on small businesses for cybersecurity, digital services, and business analytics products and services in fiscal 2020…” Read the full article here.
Source: This Is IT: Small Business IT Obligations Reach All Time High – By Laura Criste, February 8, 2021. Bloomberg Government.
