The list of the top 100 managed service providers developed by SC Media’s sister brand ChannelE2E reported that worldwide government IT spending will likely reach $557.3 billion in 2022, up 6.5% from last year.
Some of the growth will come from the American Rescue Plan Act of March 2021, which will fuel IT funding on sustainable growth, social programs, education, cybersecurity, and digital inclusion, according to Gartner.
This level of spending bodes well for the government sector as the ChannelE2E study found that annual recurring revenue among the leading MSPs in 2021 was $70 million. Gartner adds that spending on software (up 12%) and IT services, including security (up 8.4%), will lead the market forward.
“In addition to general government expertise, MSPs are pivoting hard to support Cybersecurity Maturity Model Certification requirements, while also consulting with government agencies to align around the mandate, ChannelE2E found," said Joe Panettieri, ChannelE2E editorial director.
John Heneghan, president of ECS, said that he and his team continues to see the public sector market move toward managed service as a preferred service delivery model. Government agencies do this so they can access providers like ECS with deep experience and capability to drive a focus on IT outcomes from the enterprise to the end user.
“This is more than cost reduction,” Heneghan said. “It’s about cost stability and increased focus on transformation that drives mission enhancement.”
Heneghan also added that government cybersecurity standards, such as the White House executive orders recently are adding strain to agency resources. As a result, Heneghan said MSPs can offer a suite of best-in-breed technologies to provide enterprise-wide zero-day threat defense, real-time visibility of assets, vulnerability management, and advanced automated endpoint security response.
“We also leverage AI to add a layer of insight to help cybersecurity customers prioritize cyber risk based on severity and urgency,” Heneghan said.
Here’s a list of the Top 5 government verticals:
- ECS, Fairfax, Virginia: The company has more than 3,500 employees throughout the U.S. ECS aims to build successful customer relationships with many of the world’s leading agencies in both the public and private sectors. The company’s highly-skilled teams works together with government agencies to solve complex challenges and provide advanced technology, science, security, and engineering solutions.
- Systems Service Enterprises Inc., St. Louis, Missouri.: Works as a partner to prime government contractors and a direct partner to deliver IT and security services to government customers.
- Network Outsource, New Hyde Park, New York: The company’s CloudSource Cybersecurity optimizes the correct hardware and software combined with rigorous maintenance and monitoring protocols.
- General Informatics, Baton Rouge, Louisiana: Delivers IT and security services to government customers throughout the South.
- Apex Technology Management, Redding, California: Practices a defense-in-depth security approach to service government clients.