Federal spending on IT services soared by 87 percent in five years, to $17.1 billion in fiscal year 2001 from $9.1 billion in fiscal year 1997, according to the investigative arm of Congress. During that period, the feds spent $64.1 billion on IT services, the General Accounting Office reported in a February letter to House Government Reform Committee Chairman Tom Davis, R.-Va. The GAO released the letter this week. In the letter, William Woods, the GAO’s director of acquisition and sourcing management, wrote that he included data on midsize companies because they’ve expressed concern about the share of IT services contracts they received. In an interview with InformationWeek late last year, Davis expressed concern that midsize vendors might be squeezed out by the behemoths and smaller firms. “They’re having a tough time surviving,” he said of the midsize vendors. The GAO letter confirms some of those concerns. Full Story
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