With the nation facing a new atmosphere of austerity and mandated budget cuts, now would seem to be the absolute worst time to target the federal government for defense-related technology contracts. Yet, for one business, tight government funding is more of an opportunity than a challenge.
After all, the Pentagon faces two massive fiscal challenges. The first is the new lean approach to defense spending following the U.S. military’s withdrawal from Iraq and its preparation to draw down forces from Afghanistan. The second deals with today’s complex political realities. Unable to fashion a bipartisan spending plan, Congress has allowed the process known as “sequestration” to kick in. Those automatic budget cuts are expected to take more than $40 billion out of Defense Department spending this year alone for a reduction of more than 7 percent.
And yet, Timothy Coffin is all smiles as he prepares to pick up more federal information technology contracts. A former U.S. Air Force officer, Coffin serves as president of iGATE Government Solutions, a wholly owned unit of information technology provider iGATE Corporation. As Coffin sees it, the era of tight Pentagon budgets actually provides a great growth opportunity for a contractor that understands the overarching theme of today’s spending environment.
Facing both financial and political headwinds, federal agencies have to take a more creative approach to managing their programs and cash flows. That means they no longer can continue to rely on the same old approaches that have served them for decades.
“I am pretty excited about some of the opportunities I see,” Coffin says. “I’m not going after the $10 million opportunities; I’m going after the $100 million, $200 million opportunities, and we’re getting quite a bit of interest from the government in what we consider our value propositions.