As the report points out, the leading firms in the public sector IT space continue to shift focus toward homeland and cybersecurity, information assurance and counterterrorism. “In the uncertain economic environment, the ‘Big 4’ IT services contractors – Lockheed Martin, General Dynamics, Raytheon and Northrop Grumman – have shown a great degree of resilience and ability to adjust to market conditions. Large public services companies have been successful at adjusting their portfolios and capabilities to accommodate the shift in U.S. federal government priorities,” said Eugene Zakharov, TBR’s Director of Professional Services. As a result of deeper penetration into the more lucrative and growing public sector IT services space and a more limited exposure to the ongoing recession in the commercial space, most Tier 1 firms covered in the report experienced slight sequential increases in trailing 12 month growth.

“TBR believes the outlook for 2010 remains bright as the stronger budget growth in fiscal 2009 and some contracts delays spilling into the next year should lead to a solid year for non-defense sectors such as healthcare, cybersecurity, green technology, cloud computing and secure digital infrastructure,” Zakharov continued. “We also expect some strong acquisition activity in 2010 as vendors expand and deepen their service portfolios to accommodate growth in the areas of demand.”

“TBR expects the growth in federal spending on cybersecurity and cloud computing to outpace the overall growth in federal IT spending over the next several years, generating significant growth opportunities for vendors with the deepest competencies in these high-demand areas,” said John Caucis, an analyst with TBR’s Professional Services division.

“Meanwhile, in lieu of implementing new command, control and communications systems, DoD clients are turning to the Tier 1 contractors for services to integrate and improve the interoperability of existing systems and are seeking more third-party support and training services from their IT services vendors. In addition, demand is growing for IT-related information security, border security and counter-terrorism solutions by foreign governments, luring the major U.S.-based government sector IT contractors offshore at an increasing pace.”

Analyzing the performance of 15 companies using more than 15 standard and proprietary metrics, TBR’s public services benchmark report provides expert analysis of services companies’ businesses and operations in the public services sector (federal and state and local); their strategies, actions and financial results; and what might be expected in coming quarters. The PSBQ team provides commentary on IT services in the public sector such as strategy and management consulting, systems integration and outsourcing and covers the following companies on a quarterly or semiannual basis: Accenture, ACS, Atos Origin, Capgemini, CSC, Deloitte, Fujitsu Global Services Businesses, General Dynamics Information Systems and Technology, HP Services/EDS, IBM Global Services, Lockheed Martin Information Systems and Global Services, Northrop Grumman Information and Services, Raytheon IT Services, SAIC, T-Systems, and Unisys.

Technology Business Research, Inc., headquartered in Hampton, N.H., is recognized as one of the leading high-tech market research and consulting firms specializing in the analyses of computer, software, networking equipment, wireless, portal and professional services companies, as well as customer satisfaction studies. Serving a domestic and international clientele of high tech manufacturers, IT professionals, end users and financial executives, TBR provides timely and accurate market research and business intelligence in a format that is uniquely responsive and tailored to clients’ needs. TBR analysts are available to further address client specific issues or information needs on an inquiry or proprietary consulting basis.