Feds look to greater use of enterprise systems

Driven by management mandates for system consolidation at the Department of Homeland Security and Administration, the federal market for ERP products and services will hit $7.7 billion in 2009, a 37 percent increase over 2004 fiscal year spending of $5.6 billion, according to a report from INPUT, a provider of government market intelligence.

INPUT estimates the federal market for those products and services will grow at a 6.4-percent compound annual growth rate, with civilian agencies accounting for the largest portion of spending—$3.4 billion by 2009. Department of Defense spending on the same products and services will reach $2.7 billion by 2009 and will increase at a higher annual compound growth rate than that of civilian agencies—7.7 percent—which is led by strong growth in the financial and supply chain management categories.

"The President's Management Agenda and its five areas of focus—workforce management, competitive sourcing, improved financial performance, expanded e-government and budget, and performance integration—are to credit for the healthy market for ERP," says Chris Campbell, senior analyst, federal market analysis at INPUT. "We expect this growth to continue regardless of what the November elections bring."