Outsourcing has always generated significant political debate, which in some cases has stalled this sector's growth at the state and local level.

Outsourcing has always generated significant political debate, which in some cases has stalled this sector's growth at the state and local level. As the economy continues a strong recovery, we expect outsourcing opportunities to increase on the state and local level.

With growth remaining strong, the debate at the Fed over when to stop may start including a discussion about whether some braking should be done.

The introduction of several programs designed to review systems and program performance has resulted in efficiencies and cost-saving efforts.

The federal government is acting more and more like a private sector business. They are cutting costs, reviewing opportunities closely, and conducting cost-benefit analyses for their IT investments. This is a new era in government spending practices and these cost-saving measures will affect federal IT budgets and, therefore, vendor opportunities.

The message delivered by OMB [the Office of Management and Budget] is that performance and measurement will play critical roles in the review and approval of budgeted spending, especially the close review of agency-by-agency progress reports on meeting administration goals for managing IT projects and developing effective business cases.