IT Spending: Third-Party Management and Partnerships Cut Costs for US Government
Just over five years into the U.S. government’s efforts to consolidate data centers and cut IT spending, Computerworld reported the Government Accountability Office (GAO) highlighted savings of some $3.6 billion, according to its recent study.
That amount, however, is still billions away from goals set by the U.S. Office of Management and Budget. With room for next steps and additional cuts, the time is right for the U.S. government to look further into strategies and approaches.
In the following examples of how third-party partnerships and outsourced management can help, opportunities for efficient, less expensive approaches represent real advantages for officials seeking IT spending savings without sacrificing progress and responsive IT results.
Managed Services as a Conduit to Efficiency and Innovation
One of the key challenges that the government faces is that of the traditional, step-by-step approach to changing infrastructure. A key way out of that time- and resource-consuming process is to partially or wholly eliminate the need for mainframe or server infrastructure as an in-house effort.
Cost savings and ongoing upgrades can happen in more agile and dynamic ways when IT leadership looks to third-party and managed services. There are precedents for success: La Caixa, one of Spain’s leading banking institutions, reported saving €400 million in IT spending over 10 years thanks to outsourcing its IT management.
Leveraging Consolidated Multivendor Environments With Third-Party Support
As organizations — including government agencies — add hardware and software from multiple vendors and manufacturers over years of operation, IT ecosystems become increasingly difficult to manage. Respondents in an IBM report allocated one to two days per month to managing these complex multivendor IT environments. Their time was spent:
- Adding capacity (43 percent on hardware, 29 percent on software);
- Tuning (43 percent on both hardware and software);
- Installing patches (47 percent patching hardware, 44 percent patching software); and
- Retesting (45 percent testing hardware, 45 percent testing software).
As government agencies look to consolidate and streamline IT spending, untangling IT from the multivendor ecosystem via third-party partnerships simplifies the landscape and makes it more cost effective.
Achieving Cutbacks in IT Spending
When approaches such as consolidation and cloud migration are paired with the kind of resource-adding partnerships that outsourced IT management strategies bring to bear, the results are not only the desired cutbacks in IT spending but also increased confidence. With third-party support, the government’s crucial infrastructure can remain progressive, secure and responsive while ridding itself of in-house redundancies and bloat.