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Top IT Industry NAICS Codes and Spending Trends

 

For several years the information technology (IT) industry has modernized how the federal government does business. When examining the White House FY 2022 Federal IT Budget, requests were higher than ever. Not only did this budget include improving the federal IT workforce, but it also included a $500 million increase in the Technology Modernization Fund (TMF). It’s very evident that today, more than ever before, IT modernization is a top priority for federal procurement. Because of this, it’s essential to look deeper into the top IT-North American Industry Classification (NAICS) Codes through the GSA Schedule.

If you are a current or prospective GSA Schedule Contractor, you will need to know how to find excellent opportunities for your company in order to be successful. Understanding what your NAICS codes are is the first step to finding your space in the federal contracting marketplace.

What are NAICS codes? 

The federal government uses NAICS codes to classify businesses according to their primary activities. There are over 1,000 different NAICS codes organized into 20 major sectors. Small businesses can use NAICS codes to research government contracting opportunities. Furthermore, NAICS codes can offer valuable insight into government spending.

Why are NAICS codes important?

Businesses use NAICS codes to identify themselves and their products or services for statistical purposes. Governments use NAICS codes to track and monitor the economy for tax purposes and procurement.

Business owners and operators also use NAICS codes to:

  • Determine which businesses are their competitors
  • Research markets
  • Identify potential customers
  • Identify businesses that may be interested in selling their products or services. 

To learn more about each NAICS Code and how they fit into the government procurement system, you can visit naics.com.

Top 5 IT NAICS Code

1.NAICS Code 334111 – Electronic Computer Manufacturing  

This industry comprises establishments whose primary function is to manufacture electronic computers, including mainframes, desktop and laptop computers, and computer servers. This industry also includes establishments manufacturing portable computers, such as tablets and handhelds.

2. NAICS Code 54151 – Computer Systems Design and Related Services

This industry comprises establishments primarily engaged in planning and designing computer systems that integrate computer hardware, software, and communication technologies. The hardware and software components may be provided by this establishment or company as part of integration activity or may be provided by third parties. These establishments often install the system they designed. 

3. NAICS Code 51121 – Software Publishers

This industry comprises establishments primarily engaged in developing, producing, publishing, and distributing computer software for sale or license to end users. This industry includes in-house developed software, as well as custom software development. 

4. NAICS Code 541511 – Custom Computer Programming Services

This industry comprises establishments primarily engaged in writing, modifying, testing, and supporting software to meet the needs of a particular customer. Programming services may be performed using proprietary or third-party software. 

5. NAICS Code 541519 – Other Computer-Related Services

This industry comprises establishments primarily engaged in computer-related services, such as computer systems design, managed IT services, cloud computing, and other computer-related services. 

Below are the top 5 IT NAICS codes, the total amount spent through the GSA Multiple Award Schedules (MAS) in the 2021 fiscal year, and the top government agencies doing business with these NAICS codes.

The IT industry is vital to the success of businesses and government agencies worldwide. By understanding the top 5 IT industry NAICS codes and their spending trends, companies will be better equipped to make informed decisions and capitalize on the right opportunities.


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CategoriesGeneralIndustry Insights

The Future of Work: Closing the Skills Gap

In this Q&A, Tony Holmes, Practice Lead for Solutions Architects Public Sector at Pluralsight, discusses how Federal government agencies can better understand their skills gaps to enable better workforce development.

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How are government agencies taking new and innovative approaches to retraining and upskilling their existing workforce?

Agencies are dealing with a skills gap that has been a problem for some time, and COVID has made this problem even more complex. Agencies are having to rethink how they execute on their strategies and close the skill gaps without having as much in-person training.

More and more, agencies are seeking tech skills platforms like Pluralsight for virtual learning. One of the benefits to this model is that Pluralsight has the ability to benchmark skills and create individualized learning paths.

How can agencies create programs around skills development, and why should they invest in skills development programs?

One of the best ways is to create a culture of learning. This means giving employees permission to learn. The traditional approach has been to keep training separate from the actual job. Forward-thinking organizations realize that technologists’ training needs to be a part of their day-to-day jobs. It is one thing when the boss says, “Go and take a little time to do some learning,” but it is absolutely another thing when the CIO says, “I expect our technologists to learn as part of their jobs.” Making time for learning has always been a struggle within government, but agencies need to move away from
the idea that people cannot afford to take time away from their jobs to learn new skills.

How can an agency most effectively assess the technical skill levels of their staff?

In the past agency leaders would typically call an auditor or consultancy. They would spend months evaluating peoples’ skills and write a report based on the agency’s objectives. The whole process might take six months or more, by which time the mission priorities might have changed.

Pluralsight uses tools like artificial intelligence and machine learning to perform a skills gap analysis in real time. Executives go into the analytics within the platform to get a real-time view of where they are at that point in terms of skills. The data is always up to date. We also provide suggestions of content that can help agencies easily provide additional training. One of the biggest obstacles we have as learners is that we don’t know what we don’t know; we don’t know what we need to learn.

What is involved in implementing a workforce development strategy?

Our customers gain a huge amount of success from using data and analytics tools. The data drives the transformation of programs, and you need the right tools to address the problems you have encountered with workforce development. They also need that culture of learning within the organization to help sharpen employees’ skills.

One successful example is Utah’s Department of Technology Services (DTS). DTS wanted to leverage tools to help its employees build new skills and identify areas where additional training could help the agency adapt to the sea change in how the state does business.

With more than 7,000 online courses across more than 850 technologies, Pluralsight’s web-based Skills
platform offered a range of training and tools for DTS employees. DTS managers also worked with Pluralsight to create “channels” of aggregated training content.

At the same time, DTS used Pluralsight’s Flow platform to help managers take a closer look at ongoing projects for potential skills gaps. By analyzing code from projects in progress, managers have targeted additional skill-building for their teams based on the efficiency of the work being done.


Pluralsight is the leading technology workforce development company that helps companies and teams build better products by developing critical skills, improving processes and gaining insights through data, and providing strategic skills consulting. Trusted by forward-thinking companies of every size in every industry, Pluralsight helps individuals and businesses transform with technology. Pluralsight Skills helps enterprises build technology skills at scale with expert-authored courses on today’s most important technologies, including cloud, artificial intelligence and machine learning, data science, and security, among others. For more information about Pluralsight visit www.pluralsight.com/industries/government