Many industry analysts and investors have expressed concern about the outlook for federal services companies. They seem to believe that the industry's best years are in the rearview mirror.
The public federal IT and professional services firms will soon report second-quarter 2007 results. I generally expect them to report results in line with projections but to be cautiously optimistic of future results.
The growth rates of the federal IT budget and growth among the publicly traded federal IT services firms have been slowing on average since the Iraq war began because funds allocated to the war have not fully covered the costs and usually have been delayed.
If the government is preventing money from being spent 10 to 20 times during a 15- to-20-month reconciliation process, isn't it possible that the cost to the economywill outweigh the tax benefit?
CACI International plans to acquire the Institute for Quality Management, a provider of performance management consulting and operational support services.
SAIC's top officials have worked to gingerly manage employee expectations, while balancing the demands of Wall Street and honoring a tradition of employee ownership.
