Diversifying Government Revenue: A Smarter Strategy for Global Resilience

|In Fundamental Analysis|By Slavyana Karchinova

Fundamental Analysis

Diversifying Government Revenue: A Smarter Strategy for Global Resilience

Companies with strengths in cross-border deliverable sectors, such as IT, Consultancy, and Education, should actively expand their participation in international government contracts. By diversifying across markets, they can reduce reliance on any single country and mitigate risks from disruptions like the ongoing US government shutdown, securing more stable revenues and long-term growth opportunities.

Navigating Uncertainty: Lessons from the US Government Shutdown

The US government has been shut down for nearly a month, and while all stakeholders hope for a swift resolution, history points to even longer disruptions. Periods like these create serious challenges for companies heavily reliant on US government contracts, straining their cash flow and testing their financial resilience.

Why Diversify? The Case for Cross-Border Government Contracting

The familiar financial principle, ‘Don’t put all your eggs in one basket,’ has never been more relevant today in the world of government contracting. While diversification is not possible for sectors tied to local infrastructure (such as construction or manufacturing), it could be feasible for companies whose work transcends borders. Industries like IT & Software, R&D & Consultancy, Business Services, and Education lend themselves to deliver value internationally.

Data-Driven Proof from TenderAlpha’s Global Government Contract Database

An analysis using TenderAlpha’s government contracting data examined American-registered companies that won contracts in Europe and the UK, excluding cases where a locally set up subsidiary delivered the work. The focus was specifically on companies winning contracts abroad without establishing an overseas entity. This demonstrates that physical presence abroad is not a prerequisite for international government contracting success.

Industries with High Cross-Border Potential

  • Engineering, Architecture, Inspection (CPV Division 71)
  • IT & Software (CPV Division 72)
  • R&D and Consultancy (CPV Division 73)
  • Business, Legal, and Marketing Services (CPV Division 79)
  • Education & Training (CPV Division 80)

Key Findings: How Diversification Pays Off

Year-to-Date (September 16, 2025) 169 American-registered companies won 414 contracts in Europe and the United Kingdom worth $2.7 billion.

  • Most active sectors: IT & Software (270 contracts), Business/Legal/Marketing Services (63), Education & Training (28)
  • Highest total contract value: Education & Training ($1.4bn), IT & Software ($1.3bn), Business Services ($42m)
  • Average contract size: $6.6m; Education & Training ($50.5m), IT & Software ($4.6m), Miscellaneous Services ($1.3m)
  • Top countries: United Kingdom (162 contracts, $1.8bn, $11m average), Spain (66, $107.8m, $1.6m average), Germany (33, $10.4m, $315k average)
  • Regions with largest single-award contracts: Belgium ($87m average), Switzerland ($51m average), United Kingdom ($11m average)
  • Company profile: 63% listed companies (winning contracts worth $1.2bn) and 37% unlisted (winning contracts worth $1.6bn)

These results show that American companies are already securing substantial international business in industries where cross-border delivery is feasible, even without a locally registered entity. While contracts are awarded across a range of industries (Figure 1), the highest-value tenders are concentrated in the Education & Training and IT & Software sectors (Figure 2).

Number of EEA and UK Government Contracts Awarded to American Companies YTD per Industry
Figure 1. Contracts awarded to American companies by industry (EEA & UK)
US$ Value of EEA and UK Government Contracts Awarded to American Companies YTD per Industry
Figure 2. Total contract value by industry (EEA & UK)

Notably, while private companies represent only about one-third of all such government contracts (Figure 3), they secure nearly two-thirds of the total awarded value (Figure 4).

EEA and UK Government Contracts to American Companies YTD — Awardee Company Type
Figure 3. Contracts by awardee company type (EEA & UK)
EEA and UK Government Contracts to American Companies YTD — Awarded US$ Value per Company Type
Figure 4. Total value by company type (EEA & UK)

Comprehensive Government Contracts Solutions at TenderAlpha

TenderAlpha offers real-time monitoring and alerts for open and awarded government contracts from more than 50 countries. Our continuously updated database covers over 120 million awarded government contracts, including direct links, early notices, contract renewal alerts, and full project details. With our breadth of coverage, we host the largest global database of government contracts in the world.

Interested in Expanding Your Reach?

Contact us at TenderAlpha for actionable intelligence and custom solutions to help future-proof your business against government shutdowns and other market shocks.