Softening State & Local Government Spending Requires Savvy Vendors

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Despite slowing growth and FY2009 budget woes, the State and Local (S&L) IT market still holds opportunity for federal contractors able to identify and capitalize on opportunities in the market. According to a recent report from the INPUT Executive Program (IEP), the S&L market is still a viable avenue for organic growth, as long as contractors educate themselves about the nuances between the federal and S&L markets, as well as those between individual states.

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The key is to start small and educate yourself about the customer’s unique challenges

Despite slowing growth and FY2009 budget woes, the State and Local (S&L) IT market still holds opportunity for federal contractors able to identify and capitalize on opportunities in the market. According to a recent report from the INPUT Executive Program (IEP), the S&L market is still a viable avenue for organic growth, as long as contractors educate themselves about the nuances between the federal and S&L markets, as well as those between individual states.

While some states and localities are facing tightened budgets, there is a still a continuous flow of federal money in the form of mandatory funding, grants, and other voluntary partnership agreements. Many of them face some of the same challenges as the federal government, which offers federal contractors a way to expand their presence in the public sector. “Even in the current environment, contractors that conduct careful analysis and diversified targeting, and find the buyer’s ‘sweet spot’ that aligns with their strengths, can succeed in this market,” stated Deniece Peterson, senior analyst with IEP. “The key is to start small and educate yourself about the customer’s unique challenges,” she added.

One of the biggest challenges federal contractors face in making the shift to the S&L market is in learning the nuances and priorities of each state and locality. The need for increased efficiency is the backdrop for most IT priorities, which provides the opportunity for contractors to introduce innovative solutions with manageable risk. However, Peterson suggests sticking to solutions that address population-driven, budget-neutral priorities. “States and localities are very citizen-centric. In a time of budget cuts, programs related to providing services to citizens will have priority in IT spending,” stated Peterson.

IEP’s report, Ten Things You Need to Know About the State and Local Market (Especially if You’re Not in It) is available to INPUT Executive Program members. For more information on becoming an IEP member, visit http://iep.input.com or call 703-707-3500.

About the INPUT Executive Program
The INPUT Executive Program™ (IEP) is the only business development peer group in the industry delivering powerful results through deep market knowledge, broad research capabilities, and intellectual capital based on more than 25 years of government expertise. For more information about IEP, visit http://iep.input.com or call 703-707-3500.

About INPUT
INPUT is the authority on government business. Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. Over 1,300 member organizations, including small specialized companies, new entrants to the public sector, and the largest government contractors and agencies, rely on INPUT for the latest and most comprehensive procurement and market information, consulting, powerful sales management tools, and educational & networking events. For more information about INPUT, visit http://www.input.com or call 703-707-3500.

Proper use of name is INPUT

Media Contact: Helena Brito
hbrito(at)input.com
703-707-4161

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