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New Research: 'As a Service' Represents Fundamental Shift in Government Acquisition of Technology and Services
[October 15, 2014]

New Research: 'As a Service' Represents Fundamental Shift in Government Acquisition of Technology and Services

(Targeted News Service Via Acquire Media NewsEdge) ARLINGTON, Va., Oct. 14 -- The Professional Services Council issued the following news release: In a new study by Market Connections, Inc. and Professional Services Council (PSC), 70 percent of government IT decision-makers report moderate to high impact of the "convergence" of technology and professional services, or consumption-based "as a service" acquisition approaches, on the government marketplace.

The research study, released today at a PSC/Market Connections event, benchmarks the status of convergence and reveals gaps in adoption and understanding between government and the contractors who serve them. Both government decision-makers and contractors agree that convergence is causing a shift in how government buys and industry provides solutions, yet government respondents reveal significant perceived barriers to adoption such as security risks and cost concerns.

Research Highlights Include: * Nearly three-quarters of respondents report moderate to high impact by convergence (75 percent of contractors and 70 percent of government).

* Government respondents are less familiar with convergence than their counterparts in industry: 13 percent of government is unfamiliar, versus no contractor respondents.

* Less than one-third of government report using as a service models right now, with software and communications topping the list of services, and platform and training at the bottom.

* Top benefits of "as a service" include paying only for what is needed, scalability, rapidly deploying new services and improved performance.

* Contractors believe significantly more strongly than government that little or no capital expenditure and improved security are "as a service" benefits.

Government's top barriers to adoption include security issues/risks, budget constraints, vendor or solution lock-in and unpredictable costs, and they feel significantly more strongly than contractors about security and cost-related barriers.

"Convergence represents a fundamental shift in the way government is doing and will continue to do business," said Stan Soloway, PSC president. "This will require adjustments to requirements and acquisition models, and companies will have to work with their customers to help them understand and fully leverage the benefits of 'as a service' models." A white paper from Market Connections and PSC outlines the research findings and implications for both government and contractors. The white paper is available for download at

"This study shows us we are on the cusp of a shift in the marketplace," said Lisa Dezzutti, president and CEO of Market Connections. "Convergence is about more than just IT and technology. It involves changes in how government scopes and procures services and technologies, how contractors shape their offerings to the government and the up-front investments contractors make to build and support 'as a service' models." About the Study In August 2014, leading government market research firm Market Connections, Inc. conducted an online survey of 224 federal government decision-makers involved in selection or acquisition of IT products and services, and 227 government contractor employees, regarding their perceptions of convergence and how these models impact federal procurements.

About Market Connections, Inc.

Market Connections delivers actionable intelligence and insights that enable improved business performance and positioning for leading businesses, trade associations, and the public sector. The custom market research firm is a sought-after authority on preferences, perceptions, and trends among the public sector and the contractors who serve them, offering deep domain expertise in information technology and telecommunications; healthcare; and education. For more information visit: Follow Market Connections on Twitter @mkt_connections.

[Category: Government/Public Administration] TNS 24HariCha-141015-30FurigayJane-4898476 30FurigayJane (c) 2014 Targeted News Service

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