News & Events

Economic Barometer Newsletter


Spring 2005

Adapting Successfully to Change: New Study of Greater Washington’s Info Tech Industry Documents Strong Workforce, Impact of Federal Spending

Providing a current analysis of an industry that has weathered significant changes in the past five years, the Greater Washington Initiative (GWI) this week released an important technology study: Information Technology, Communications and New Media in Greater Washington. The study, authored by former Washington Post reporter Peter Behr, is available online at GWI’s website: www.greaterwashington.org.

The first of its type in nearly five years, the study features personal insights of nearly 40 industry leaders in the Washington, DC region. Senior executives of major firms based across the region are quoted in the study; these firms include: America Online, Discovery Communications, E*Trade, Lockheed Martin Information Technology, Nextel Communications, MCI, SAIC, Verizon and XM Satellite Radio.

To compete in the government market, several executives interviewed for the study discussed the unique advantages of being located in the Greater Washington region and the strength of the region’s highly educated workforce. They suggest that the area’s IT capabilities can be expanded in the future to focus on providing comprehensive solutions to commercial firms in telecommunications, health care management and other sectors.

Data in the study documents the rise in federal government spending and includes a positive industry outlook:

  • The increasing number of federal contracts made the Washington region the fastest growing metro area in the country, by far, between 2000 and 2004.
  • Federal information technology spending nationwide is projected to increase from $58 billion in fiscal year 2005 to $74 billion in 2009, according to Input Inc. On top of that is another $10 billion in estimated spending on classified technology programs, most of which is done in the capital region. This spending clearly creates significant business opportunities for technology companies.

    •  Among other findings:

  • Despite tremendous changes in the industry nationwide, Greater Washington managed to maintain a stable tech workforce over the past four years. The region’s technology workforce is approximately 333,000, (one in ten area workers), more than twice the national average.
  • The national capital area’s number of workers in computer systems designs and related services (132,700 people) significantly outpaces all other major metro areas regions and is three times more than San Jose (41,500 employees
  • The Greater Washington region has a higher concentration of network and computer systems administrators, database administrators and computer programmers than the San Francisco/San Jose area or any other leading tech region in the country, according to Labor Department surveys.
  • With 33,800 workers in the telecommunications sector, Greater Washington ranks third when compared to the nation’s other major metro regions.

    • The IT report is posted online, and printed copies will be available by April 15. To view the Executive Summary or to download the entire 32-page study, visit www.greaterwashington.org. To request a printed copy of the study, please email GreaterWashingtonInitiative@bot.org.

    The Greater Washington Economic Barometer is a quarterly communication from GWI for business professionals on regional economic trends and news. For more information on the Economic Barometer or to be added to the distribution list, email greaterwashingtoninitiative@bot.org. To opt-out of this list, please reply to this message with UNSUBSCRIBE in the subject line. For regional statistics and news, visit our web site at www.greaterwashington.org. GWI is an affiliate of the Greater Washington Board of Trade.

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    (202) 857-5999