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IT Spending on GSA Schedules Is Slipping

IT spending through GSA schedules is declining for the second straight year, according to the market research firm Input.

After peaking in 2004, IT sales declined by 2% last year and will drop another 1% this year, the report says.

Lower equipment sales dragged the total down last year, but Input says sales of IT services are also falling in fiscal 2006.

“Overall federal IT spending continues to grow at an attractive pace, so the decline in Schedule 70 spending reflects a conspicuous move by buyers to other contract vehicles,” said Ashlea Higgs, manager of new markets at Input. “Consecutive years of slowing sales provide additional confirmation that a vendor’s contract portfolio must include non-Schedule, customer-specific procurement options.”


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