5. The Push Toward IROI Might Drive Out Stagnant Contractors
With a shift in presidential administrations also comes a shift in priorities, and several solution providers are eyeing federal agencies with the thought that new IT priorities -- and new oversight on efficiency and cost effectiveness of technology -- are going to create openings for smaller businesses and specialty players that haven't always been there in the past.
"They're really taking a look at the value they're getting from what they're buying, and in the next year plus, you're going to start seeing companies of our size getting more and more visibility inside of federal agencies that we haven't in the past," said Matt Garst, vice president of worldwide sales and marketing at Enterprise Information Management (EIM), a Dayton, Ohio-based solution provider and IBM partner.
Among several contracts, EIM has had great success particularly with the U.S. Army, for which it designed and implemented a business process automation solution that saves the Army $1 billion a year in personnel fitness and evaluation reports. Garst credits EIM's ability to come to agencies as a fresh face with fresh outlooks on business process management -- not the same ol', same ol' "What do you need this year" style approach seen in many stagnant, legacy integrator contracts.
Is the era of Instant Return on Investment (IROI) starting in government, as it has in commercial?
"A lot of the larger companies that have been on contract forever may suddenly find themselves going away," Garst suggested. "The government is tired of paying for something now and not seeing results for years and years, so they will start looking at smaller companies that truly understand particular technology areas instead of some of the big integrators they've always gone with. We've been starting to see some of that in the last 18 months, no doubt."