Government Contractors Association

Your Partner in the Government Market

How Contractors Can Tap into the State & Local Market

Posted by Blair on November 6, 2014 at 12:30 AM

Companies selling technology solutions to the government are facing flat spending, lower margins, new acquisition methods, limited resources, and increasing competition. In 2013, a PulsePollTM from Market Connections, Inc. and Lohfeld Consulting Group revealed almost half of contractors (45 percent) were re-architecting by expanding into adjacent markets in response to government market pressures. To address the continued challenges that surround the market, immixGroup is hosting the Government IT Sales SummitNovember 20, 2014 in McLean, Virginia.

The 2008 recession and sequestration hit state and local governments hard, and much IT acquisition came to a halt. Over the last few years, however, state and local governments have increasingly invested more than the federal government—they spent $95 billion on IT in fiscal year 2014, with steady year-over-year growth expected. Contractors understand this is a good market—the PulsePoll showed that contractors are looking to it for expansion with 48 percent pursuing it in 2013 versus 29 percent in 2012.

Guran Green, immixGroup VP of Corporate Development, is conducting a session at the summit on how contractors can tap into the state and local market. FedPulse had the opportunity to speak with him about some of the trends in state and local procurement and what contractors can start doing now to reach these customers.

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