As revealed in Onvia’s Q1 2016 State, Local and Education Procurement Snapshot the overall SLED contracting market saw a 2.7% rate of increase in competitive bid & RFP opportunities.
Out of four major industry groups examined in the report, the technology group saw a 1.9% rate of growth over the same quarter the previous year. This is the third largest rate of growth among the industry groups that were examined.
Special to this blog is an easy-to-share infographic that summarizes what happened in the Q1 2016 technology SLED contracting market:
Uptick in Technology Contract Growth Supports Public Sector Market Expansion
Onvia, as well as a variety of sources, expect modest growth for the 2016 SLED market overall. For example, the National Association of State Budget Officers (NASBO) reports that 43 out of 50 state governments enacted general fund budget increases for fiscal year 2016.
The technology market specifically showed a 1.9% rate of growth in the number of opportunities, which follows an 11.3% rate of growth during the previous quarter (Q4 2015). For technology, driven by software and IT consulting projects, growth was strongest at the state level, pointing to a continued focus on modernization and efficiency.
Highlight: Software Leads at 11.7% Growth
For this analysis the technology group is broken out into four sub-categories: Software, IT consulting, hardware and wireless/telecom.
Out of the four sub-categories, software saw the largest rate of increase in bid & RFP opportunities for the quarter at 11.7%. The second highest rate of increase was in IT consulting contracts, at 6.4%.
Highlight: Technology Contracts Driven by State Agency IT Modernization Efforts
When looking at the distribution of technology projects issued in Q1 2016 by level of SLED government, projects issued by state agencies stood out with a 7.0% rate of growth. This strength among state agencies supports the larger trend of efforts to modernize government IT. For example, Onvia recently highlighted IT consulting related to the modernization of government IT in our 10 Hotspots in Government Contracting for 2016 report, where it was revealed that state buyers issue a 37% share of IT consulting bids and RFPs.
Other than the 7.0% technology growth at the state level, there was a 1.1% rate of growth at the local level and a -2.3% rate of growth at the education level.