Input sees growth in outsourcing

Input's Federal Outsourcing MarketView report

A new report predicts that agencies will outsource more information technology work over the next five years.

Input, a market research firm, forecasts that spending on outsourcing will rise 55 percent, from $11.7 billion in fiscal 2004 to $17.4 billion in fiscal 2009.

The coming retirement of some professionals is the single greatest factor driving the increase, said Chris Campbell, a senior analyst at Input. About one-third of federal IT program managers could retire by 2006, he said.

However, most of the outsourcing will mean hiring U.S.-based contractors, he said. The movement of work to other countries, while it is a concern, "remains a minimal part of the total spent on federal IT outsourcing services," he said.

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