The 2025 GAUGE Report is here, and it looks at many of the pressures impacting the GovCon industry, as well as the trends and insights leaders need to know to stay ahead of the curve. Now more than ever, GovCons should be focused on digital transformation, automation, and leveraging operational efficiency for growth.
In fact, this year’s report found a consistent correlation between companies that reported higher usage of automation and greater resource and project management maturity, and those that reported stronger revenue growth outcomes and higher confidence in future performance. So, let’s take a closer look at the data behind the trend.
Examining the role of automation in high-revenue companies
The correlation between higher usage of automation and greater revenue growth is not surprising. Automation enables companies to streamline manual tasks, improve forecasting accuracy, and free up teams to focus on high-value project work. Companies using automation report fewer manual errors, better project visibility, and faster delivery.
This year’s report found that companies continue to rely on updating policies and procedures as a top method to improve project management efficiency. Modernization remains a top approach to increase efficiency; the percentage of companies looking to automate has risen 6% percentage points this year.
Existing revenue also plays a role in the willingness and ability of companies to evolve. Companies with revenues below $10M are the least likely to automate, while those earning over $50M more frequently consider restructuring their PMOs. High-revenue and AI-mature companies are leading in predictive forecasting, automation, and policy updates. They are also more likely to report restructuring PMOs, and deploying proven AI and ERP systems to manage increased complexity, scale efficiently, and protect profit margins.
Solving practical challenges with PMO restructuring and strategic tech investment
Discussing automation and efficiency opportunities is one thing – implementing the new systems and processes required to bring those ideas to fruition is another. That’s where the right PMO model can come into play.
The most efficient, successful project management stems from a shared understanding and consistent application of PM practices. A PMO defines the standards for project management across the organization through documentation, metrics, and processes. There are two types of PMOs – centralized (best for larger companies) and decentralized (best for smaller companies). Setting up the right model, or refining your existing model, is a critical factor in success, and is possible regardless of current revenue. Learn more about how you can choose the right model for your company.
Companies that already have a PMO in place have reported actively evaluating them, with 23% of respondents considering a restructure this year. Unsurprisingly, companies with established PMOs are more likely to update their policies and restructure their PMOs.
Regardless of the current state of a given PMO, its mere existence is a clear indicator of maturity for a GovCon company. From standardization to maturation, companies with PMOs are 4.5x more likely to have “very mature” project management practices, and 2.5x more likely to have “very mature” resource management practices.
Exploring operational results from real-world data
Strategic transformation in operational efficiency, whether through automation, the use of AI, or PMO restructuring, has real world implications beyond the bottom line. This year’s report found that 48% of respondents cited resource management as the top project challenge, and automation and structured PMOs are associated with lower manual workload and higher satisfaction.
Resource management-mature companies are also nearly three times as likely to report strong communication across teams, likely due to their more structured and rigorous working practices. Similarly, companies with a PMO are 1.5 times more likely to report effective communication than those without.
Laying the foundation for revenue growth
Ready to dig deeper into how your peers are scaling project and resource management, and how you can transform your strategy? Download the full 2025 GAUGE Report for industry benchmarks, practical recommendations, and trends you need to plan for success in the second half of 2025 and beyond.
