Federal Government Consulting Is Curtailed in Some Agencies as Part of Budget Austerity and Defense Cutbacks, Business and Industry Trends Analysis

The U.S. federal government’s spending priorities changed rapidly under the Obama administration.  After federal spending initially soared to levels never even dreamed of in the past, thanks to economic stimulus programs, profound concerns about the federal deficit prompted tighter budgets in some agencies starting in 2012 and extended into 2017 budgets. With regard to IT spending, the federal budget saw growth at a 7.1% annual rate from 2001 through 2009.  However, from 2009-16, growth slowed to 1.5% annually.  In the 2017 budget, total IT spending was set at $89.9 billion, up from $86.4 billion in the 2016 budget. Overall, federal…

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