Top Five Federal Software Product Categories for 2006

INPUT: Teaming will be the key to federal success for software firms. USA. In an analysis of over 3,000 federal business opportunities, five categories have been identified as having a high number of potential subcontracting opportunities for software companies. The five categories are document and content management, project management, supply chain and logistics management, knowledge management, and inventory management.

Federal IT contracted spending for 2006 is estimated to reach $64 billion with software procurements account for nearly $5 billion of the market. INPUT has identified the largest segment of software subcontract opportunities is under business and enterprise applications. The top five categories within the report comprise nearly 30 percent of this segment. The federal market holds ample opportunities for software vendors, whether they focus on target applications, enterprise solutions or the underlying platforms federal subcontracting opportunities. Success for both the large primes and small subcontractors in this marketplace will rely heavily on their ability to create effective partnerships.

Currently, document and content management software accounts for 34 percent of all subcontract opportunities identified within the top five categories. There are opportunities to provide this type of software among some of the highest dollar contracts to be awarded in 2006. Project management software accounts for 24 percent of the top five subcontract categories. Demand for this software is most frequently seen within software and systems development and integration projects. Although only 15 percent of the opportunities are attributed to supply chain & inventory management software, this category is potentially one of the most lucrative areas because of the high value associated with these opportunities.

Federal Opportunities for Software Companies Publ 20051214