IT COST Commission Shows the US Government How to Cut $5.8B

Next year, the federal government will spend nearly $90 billion on technology, supporting everything from day-to-day operations (think email, security, and software licensing) to the innovations happening in programs like health care and space exploration. This benefits taxpayers in many ways. But can you imagine balancing an $80 billion+ budget?

Think about it. The US government owns more than 9,000 data centers, spends close to $7 billion on the cloud and roughly $14 billion on cybersecurity. That’s a lot to manage. Add in intensified scrutiny of Federal IT investments after the passing of the Federal Information Technology Acquisition Reform Act (FITARA) and managing that budget becomes even more difficult.

On the heels of FITARA, the  Commission on IT Cost, Opportunity, Strategy and Transparency (IT COST), a group of over 70 public and private sector technology professionals focused on leveraging best practices in cost management, has just released 21 recommendations for improving transparency, optimizing IT spending and consumption, and accelerating critical initiatives in government agencies. They found the US government could save billions of dollars doing some of the things private sector companies are already doing by employing Technology Business Management (TBM) methodologies and tools such as Apptio. Simple steps like adopting a Federal TBM Taxonomy for measuring and modeling IT costs, reporting on key areas of technology spending, and benchmarking against peers have the potential to make a huge impact.

Private sector organizations that employ TBM methodologies and tools are able to make a tangible improvement in technology spending. Across Federal agencies, this equates to an estimated $5.8 billion in taxpayer dollars, at a minimum, that could be applied to innovation and a more technologically savvy public sector.

Think about what the government could do with those reclaimed dollars!

We could provide 181 million flu vaccines to US citizens

We could buy laptops for 11 million students

We could rebuild or repair more than 5,000 aging bridges

All significant contributions that positively impact our communities.

Applying the recommendations of the IT COST Commission across federal government IT departments potentially gives taxpayers a better return on their investment while promoting fiscal responsibility. At Apptio, we call that a win-win.

To learn more about the Federal IT COST Commission and download the report, visit TBM Council.