The federal government’s IT security spending growth will outstrip total federal IT spending growth over the next five years, according to a new report from the analysts with INPUT. The government business analyst firm predicts compound annual growth in IT security spending within the U.S. government of 8.1 percent through 2014. That should mean a jump from $7.9 billion spent in 2009 to $11.7 billion in 2014 if INPUT’s projections hold true.
According to INPUT, the top ten executive branch departments accounts for 65 percent of the entire IT security market. The growth could mean a huge potential upside for channel partners who are able to tap into agency RFPs and subcontracting gigs with larger solution providers who often win work on the stipulation that they have definite plans to parcel out work to small business partners.
For channel providers more firmly entrenched in the commercial sector, grabbing those plentiful government dollars may mean investing in education and work to improve strategic partnerships, says Pat Schambach, CSC vice president and general manager of the Homeland Security and Law Enforcement (HS&LE) Division at the company’s North American public sector group, who recently led his company this month to <a href=” http://www.channelinsider.com/c/a/Spotlight/Five-Ways-to-Steal-a-HalfaBillionDollar-Account-427115/”>score a half-a-billion-dollar IT services account with the Transportation Security Administration</a>.
“I think even successful, long term companies that maybe are small or midsized who have always worked in the commercial sector don't always appreciate what the government process is like, what the sales cycle time is,” he says. “It tends to be a lot longer on the government side. And so I think what they need to do is find a way--either through consultants or partnering with companies that are already in this business-- to get educated on what those processes are and why are they so mysterious compared to their commercial counterparts that they're used to (servicing).”
INPUT analyst Kevin Plexico says that the firm’s current spending projections are based on a number of federal IT strategic drivers, including a growth in the volume and complexity of attacks against U.S. agencies.
“Facing more complex and increasing attacks, the need for a multi-pronged approach will continue to drive increased funding over a wide range of opportunities,” he said in a statement.
INPUT reports that cyber attacks on federal agencies have shot up by 300 percent since 2005. In fact, <a href=http://www.uscc.gov/researchpapers/2009/NorthropGrumman_PRC_Cyber_Paper_FINAL_Approved%20Report_16Oct2009.pdf>a report written last week by Northrup Grumman</a> at the behest of The US-China Economic and Security Review Commission, a Congressional advisory committee, found that China is likely “conducting a long term, sophisticated computer network exploitation campaign" against the U.S.
Just last week, the Senate passed legislation by an overwhelming majority to reconcile Department of Homeland Security appropriations for 2010 that will jack up cybersecurity spending with the department by 27 percent, adding an additional $84 million to the National Cybersecurity Division’s coffers next year.
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