New Opportunity Analysis

Treasury IT Spending Forecast: ServiceNow & DevOps Growth

The Department of the Treasury's IT spending patterns reveal a strategic shift toward modernization, with ServiceNow platform investments and DevOps practices emerging as key priorities. Based on historical contract data spanning five years, contractors can identify several promising opportunity areas for the coming fiscal cycles.

ServiceNow Investment Acceleration

Treasury's commitment to ServiceNow platforms shows consistent growth, with contract activity spanning from license renewals to advanced workstream implementations. The department's progression from basic ServiceNow license renewals in 2021 to more complex ServiceNow Workstreams Release 3 projects in 2023 indicates expanding platform adoption.

Most notably, the recent award for "ServiceNow & Salesforce LowCode Applications" development services in 2025 suggests Treasury may be integrating multiple platforms into comprehensive digital transformation initiatives. This pattern indicates potential opportunities for:

  • ServiceNow implementation and customization services
  • Platform integration projects combining ServiceNow with other enterprise systems
  • Low-code application development using ServiceNow capabilities
  • Ongoing maintenance and sustainment contracts

DevOps Practice Maturation

The Treasury's investment in DevOps capabilities shows a clear evolution from foundational services to operational excellence. Starting with "DevOps Software Development Services" in 2020, the department expanded to establish a comprehensive "Development Operations (DevOps) Practice" by 2021.

This progression suggests Treasury may soon require more sophisticated DevOps solutions, including:

  • Advanced CI/CD pipeline implementations
  • Cloud-native development and deployment services
  • DevSecOps integration for enhanced security
  • Automated testing and quality assurance frameworks

Emerging Technology Integration Trends

The 2025 contract for "Development and Operational Software Development and Maintenance Services" indicates Treasury's focus on comprehensive application lifecycle management. This broad scope suggests the department may be consolidating various IT functions under unified service providers.

Based on these patterns, contractors should anticipate opportunities in:

  • Full-stack application development combining multiple platforms
  • Technical program management for complex IT initiatives
  • Application sustainment services with modern DevOps practices
  • Web development services integrated with enterprise platforms

Procurement Timing Patterns

Analysis of award dates reveals Treasury's tendency to execute major IT contracts during late summer and fall periods, with significant activity in August through October. This pattern suggests contractors should prepare proposals and engage in market research during spring and early summer months.

Predictions for 2026 and Beyond

Based on observed spending acceleration and technology adoption patterns, Treasury may pursue several types of opportunities in the coming fiscal years:

High-Probability Opportunities

  • ServiceNow Platform Expansion: Additional workstream implementations and advanced modules
  • DevOps Maturation: Cloud migration support and advanced automation services
  • Integration Services: Connecting ServiceNow with other Treasury enterprise systems

Emerging Opportunity Areas

  • AI/ML Integration: Incorporating artificial intelligence into ServiceNow workflows
  • Security Enhancement: DevSecOps practices and secure development lifecycles
  • User Experience: Low-code/no-code solutions for citizen-facing applications

Strategic Recommendations for Contractors

To position effectively for Treasury opportunities, contractors should:

  • Develop ServiceNow expertise: Invest in certified professionals and proven implementation methodologies
  • Strengthen DevOps capabilities: Build teams experienced in modern development and deployment practices
  • Create integrated solutions: Develop approaches that combine ServiceNow, DevOps, and application development services
  • Monitor procurement cycles: Track Treasury's solicitation patterns and prepare for late summer opportunities
  • Build past performance: Pursue smaller Treasury contracts to establish relationships and demonstrate capabilities

The Treasury Department's IT modernization trajectory suggests sustained investment in platform-based solutions and modern development practices. Contractors with strong ServiceNow and DevOps capabilities, particularly those who can integrate these technologies into comprehensive solutions, may find significant opportunities in the coming fiscal cycles.