Outsourcing: Is it the next big thing or not?

Some analysts forecast an increasing outflow of federal information technology work to private contractors, while others foresee agencies bucking the outsourcing trend because of dissatisfaction with the results. The future of federal outsourcing is unclear, but agencies have begun systematically assessing their employees’ IT skills as they wrestle with the outsourcing question.

In a new outsourcing study, the market research firm Input forecasts a steady flow of federal IT work going to private contractors. Its analysts predict that the annual value of the federal outsourcing market will grow to nearly $18 billion within five years.

Federal employee unions and some market analysts, however, say Input’s forecast is off the mark and inconsistent with earlier outsourcing studies.

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