Reston, VA (Vocus/PRWEB ) March 26, 2008 -- The Office of Management and Budget’s (OMB) Financial Management Line of Business (FM LoB) is shifting federal agencies to a Shared Service Center model and driving billions in financial management system spending. Almost $2 billion in FM LoB opportunities exist across the Civilian and Defense Markets which target the short-term sustainment of legacy systems as well as the long-term consolidation of modernized financial solutions, according to new report recently released by INPUT, the authority on government business.
“According to the FY 2009 OMB Exhibit 300s, $1.75 billion has been specifically requested to support the continued development of the FM LOB over the next two years,” stated Vajira Ranaviraja, federal analyst with INPUT. “These funding requests reinforce the federal government’s commitment to pursuing the goals of the FM LOB; cost savings for the Government through consolidation, and leveraging common solutions for financial management.”
INPUT’s report, Financial Management Line of Business: Market on the Move, measures departmental progress, highlights budgetary information and provides valuable business development opportunities and contacts.
The analysis provides vendors an understanding of the changing financial management market. Vendors can expect to see the current status of federal financial management solutions shift toward the shared service model. Market watchers should anticipate future business opportunities with Shared Service Providers to expand as federal agencies move beyond legacy sustainment.
The report suggests that, despite resistance at the federal agency’s senior leadership level, the financial management market is moving toward four Shared Service Centers (SSC) and commercial Shared Service Providers (SSP). Under the guidance of the OMB, the four SSCs are leading the development of this initiative and will be the impetus for future strategy. “Even though there is uncertainty at the Cabinet level, continued OMB commitment to the shared service center model will drive this transition,” said Ranaviraja. “As always, vendor relationships with SSCs will be important to future business opportunities.”
INPUT’s Financial Management Line of Business: Market on the Move industry report is available on INPUT’s website at http://fmlob.input.com/.