Cybersecurity
End of Federal Tech Boom May Send Contractors Elsewhere for Work
- Obama budget seeks 1.3 percent increase in technology spending
- Lockheed Martin, CSC among those who've shed some IT divisions
Models of Northrop Grumman's unmanned aerial vehicles are seen above their display area during a conference in Washington, D.C.
Photographer: Brendan Smialowski/BloombergThis article is for subscribers only.
The end of a federal government technology boom may push more U.S. contractors like Northrop Grumman Corp. to spin off units focused on certain IT work and refocus on areas like cybersecurity where agencies are boosting spending.
President Barack Obama’s new 2017 budget makes clear that the sector’s high-flying days are over. Information technology spending by the federal government has increased about 1.8 percent annually from 2009 to 2017, compared with the 7.1 percent annual growth between 2001 to 2009, when President George W. Bush was in office.