Explore Nine Ways Federal Agencies Can Transform IT and Reduce Costs

Through Strategic Government Efficiency, agencies are linking spending to desired outcomes, matching budgets to priorities and optimizing their IT infrastructure to deliver services more cost-effectively. 

Some agencies are achieving quick wins and long-term benefits through innovative approaches, which include:

• Aligning IT and mission strategies to create an overall IT roadmap. One agency with a $2 billion IT budget reduced costs and enabled more efficient business operations through this approach.

• Developing a robust IT sourcing strategy that enabled one agency to reduce contractor usage by one-third for a savings of approximately $9 million per year.

• Making smart decisions on where to cut—and invest—which led one agency to identify IT centralization and financial shared services opportunities worth $60 to $110 million in savings. 

• Building a well-governed IT investment portfolio to support mission execution. By defining IT processes, one agency eliminated $10 million in existing programs, reduced new budget requests by $20 million and identified a further $50 million in savings over five years.

• Making the most of limited IT resources. A federal agency consolidated six separate IT resource demand lists into a single one, achieving approximately $8 million in annual savings.

• Improving the predictability and quality of IT solution delivery. A state agency saved $210 million in two years by requiring business cases and implementation plans.

• Balancing IT service cost reduction with improved performance. Analyzing IT expenditures and consolidating 16 regional IT operations enabled one agency to reduce the number of IT tools used by 56 percent and identify $20 to $40 million in savings.

• Building a healthy application portfolio enabled one government agency to reduce its application portfolio by 75 percent.

• Assessing and improving IT workforce capabilities reduced costs by $6 million in the first year for one federal agency. 

Learn more about how some agencies are achieving compelling outcomes and high returns on investment while delivering their mission in unprecedented financial times.

Read “Nine Ways Federal Agencies Can Transform IT and Reduce Costs” now.