AI-Generated Insights
Auto-detectedIT Spending Nearly Doubled in 5 Years
Massachusetts IT non-payroll spending grew from $0.89B in FY2020 to $1.56B in FY2025 -- a 74% increase. This significantly outpaces inflation and overall state spending growth.
IT Staff Augmentation Rebounding Sharply
Staff augmentation spending (U05) hit $220M in FY2025, up 16% from FY2024. After declining from FY2015-2020, it has resumed strong growth -- exactly the category your slides suggest should shift to outcome-based contracts.
IT is 1.6% of Total State Spending
IT non-payroll expenses were $1.56B out of $98.3B total FY2025 spend. Adding consultant services ($1.16B), technology-related spending exceeds $2.7B.
Top 5 IT Vendors Control 22.7% of Spend
In FY2025, the top 5 IT vendors captured 22.7% of all IT spending, while the top 10 captured 34.8%. The HHI index is 194.3, indicating moderate market concentration.
Single Vendor Dominates Staff Augmentation (26% Share)
McInnis Consulting Services received $273M of the $1067M in IT staff augmentation spend (FY2020-2026), a 26% market share across 52,850 transactions. This level of vendor concentration warrants review.
Average IT Transaction Size Doubled
Average IT transaction grew from $11,417 in FY2020 to $22,885 in FY2025 (+100%). Fewer, larger transactions may indicate contract consolidation -- or reduced competition.
MOTOROLA SOLUTIONS, INC: +340% YoY Spike
MOTOROLA SOLUTIONS, INC went from $9.1M in FY2022 to $40.0M in FY2023 -- a +340% increase. Transaction count went from 75 to 166.
SMARTRONIX, LLC: +1846% YoY Spike
SMARTRONIX, LLC went from $1.6M in FY2020 to $32.1M in FY2021 -- a +1846% increase. Transaction count went from 17 to 369.
ACCENTURE LLP: +494% YoY Spike
ACCENTURE LLP went from $3.6M in FY2024 to $21.5M in FY2025 -- a +494% increase. Transaction count went from 34 to 83.
Executive Summary
Spending Trends (FY2015-FY2025)
IT Spending by Category (FY2020-FY2026)
Vendor Concentration
Top IT Vendors (FY2020-FY2026)
| # | Vendor | Total Spend | Transactions | Avg Txn | 5yr Growth | |
|---|---|---|---|---|---|---|
| 1 | $716.1M | 1,155 | $619,978 | +61.5% | ||
| 2 | $393.6M | 692 | $568,717 | -35.8% | ||
| 3 | $304.6M | 3,649 | $83,487 | +202.4% | ||
| 4 | $274.3M | 52,985 | $5,178 | +48.5% | ||
| 5 | $261.5M | 3,336 | $78,401 | +3753.2% | ||
| 6 | $258.9M | 11,362 | $22,789 | +37.2% | ||
| 7 | $163.1M | 923 | $176,701 | +30.1% | ||
| 8 | $158.4M | 2,040 | $77,649 | +712.4% | ||
| 9 | $142.9M | 232 | $616,044 | +24.9% | ||
| 10 | $136.6M | 510 | $267,819 | -- | ||
| 11 | $133.7M | 667 | $200,422 | +127.2% | ||
| 12 | $128.0M | 1,044 | $122,647 | +126.6% | ||
| 13 | $104.6M | 690 | $151,611 | -26.4% | ||
| 14 | $100.5M | 301 | $333,898 | +2842.6% | ||
| 15 | $97.7M | 26,602 | $3,673 | +30.3% |
IT Staff Augmentation Vendors (FY2020-FY2026)
| # | Vendor | Total Spend | Transactions | Avg Txn | 5yr Growth | |
|---|---|---|---|---|---|---|
| 1 | $273.5M | 52,850 | $5,175 | -- | ||
| 2 | $74.0M | 11,573 | $6,393 | -- | ||
| 3 | $60.2M | 6,118 | $9,847 | -- | ||
| 4 | $54.6M | 10,594 | $5,158 | -- | ||
| 5 | $45.9M | 25 | $1,834,613 | -- | ||
| 6 | $29.7M | 5,438 | $5,463 | -- | ||
| 7 | $27.8M | 84 | $330,498 | -- | ||
| 8 | $23.8M | 2,915 | $8,168 | -- | ||
| 9 | $21.3M | 123 | $172,766 | -- | ||
| 10 | $20.8M | 2,015 | $10,308 | -- | ||
| 11 | $20.0M | 2,233 | $8,957 | -- | ||
| 12 | $16.6M | 2,388 | $6,943 | -- | ||
| 13 | $16.2M | 1,542 | $10,512 | -- | ||
| 14 | $15.6M | 1,473 | $10,620 | -- | ||
| 15 | $14.8M | 2,823 | $5,249 | -- |