The federal IT outsourcing market in the US is set to grow at an impressive rate over the next five years, a new report has said.

A study by Input has found that the federal IT outsourcing sector will enjoy compound annual growth of 5.8 per cent until 2011, bringing spending in the sector up from $13.3 billion in 2006 to $17.7 billion in 2011.

It is thought that with many members of the US government's IT workforce approaching retirement age and with the staff coming through unlikely to be able to deal with the increasingly sophisticated technology, specialist IT firms will be in greater demand.

Furthermore, recent reductions in federal spending powers mean that many departments will be looking for a more efficient and cost-effective way of operating their IT networks.

Dr Trina Dinavo, Input's senior federal market analyst, said: "As the new Congress questions the current competitive sourcing cost savings formula, agencies will choose the path of least resistance as a matter of expediency."

 Source :ihotdesk