New Study Shows Defense Executives Concerned Budget Cuts May Adversely Affect Mission Success

WASHINGTON, Oct. 4, 2011 /PRNewswire/ -- Workforce and information technology challenges may prevent the Department of Defense (DoD) from undergoing a successful comprehensive review of all of its programs and projects, as mandated by former Secretary Gates earlier this year, according to a study released this week by the Government Business Council (GBC), supported by Booz Allen Hamilton. The study reveals that insufficient coordination between DoD organizations and the inability to define project and cost requirements upfront interfere with optimization of IT systems. Nearly two-thirds of defense executives voiced real concern that cost-reduction initiatives – although needed – may adversely affect national security missions.

Key report findings include:

• An overwhelming 90 percent of respondents anticipate a decrease in the size of the DoD's workforce. And yet, seventy-seven percent say their workload will increase or not change.  
• Nearly sixty percent of DoD executives cite coordination between departments and organizations as a factor that interferes with IT optimization.
• More than 43 percent of respondents believe in the importance of collecting data to support decision-making within the Department of Defense. In fact, more than 60 percent of those surveyed say the need for IT optimization will increase, despite reduced resources.

Survey respondents are a random sample of Government Executive's subscriber database from both the civilian and military staffs of the DoD, encompassing civilian grade levels of GS-11 through SES and military ranks of Lt. Col. and Cmdr. through Col. and Capt.

"This report offers lessons not only for the DoD's efforts to streamline IT organizations, but also presents organizational lessons for technical and financial leaders throughout public sectors," said Erin Dumbacher, Associate Director of Research at GBC.  

"The Department of Defense is the largest spender of IT in the federal government," said Gene Bounds, senior vice president with Booz Allen Hamilton. "This study shows that defense executives are concerned that blindly cutting IT budgets will put sustained mission success at risk.  It also shows that executives recognize the need for reductions and offer some priorities for efficiently achieving reduced spending levels. The solution is to take a careful, in-depth look at IT services, cost-drivers, and delivery at enterprise level."

The results were featured in a Sept. 28 webinar (Webinar On-Demand) and in a report on the Government Business Council's website: Full report

About Government Business Council Industry Insights

As Government Executive Media Group's research intelligence division, the Government Business Council (GBC) is dedicated to advancing the business of government through analysis, insight and analytical independence. As an extension of Government Executive's 40 years of exemplary editorial standards and a commitment to the highest ethical values, the GBC partners with industry leaders to study influential decision-makers from across the federal government and produce intelligence-based research and analysis.

About Government Executive Media Group

As part of Atlantic Media Company, Government Executive is dedicated to the mission of "informing and challenging the national discourse" through serving managers and executives across government. Through its unmatched reach among federal decision makers and industry leading marketing services, Government Executive Media Group is uniquely capable of helping companies achieve breakthrough business results in the federal market. For more information about Government Executive Media Group, visit www.GovernmentExecutive.com/mediakit.

About Booz Allen Hamilton

Booz Allen Hamilton (www.boozallen.com) is a leading provider of management and technology consulting services primarily to the U.S. government in the defense, intelligence, and civil markets. Booz Allen Hamilton is headquartered in McLean, Virginia, employs more than 25,000 people, and had revenue of $5.5 billion for the 12 months ended March 31, 2011.

Contact:
Erin Dian Dumbacher
202-266-7619
[email protected]

SOURCE Government Business Council