This Way to Federal IT Cost Reduction...achieve sustainable cost reduction over time. All federal...

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$ This Way to Federal IT Cost Reduction Shrinking budgets, increased expectations and a rapidly changing federal environment. Sound familiar? These austere times call for radical measures when it comes to cutting IT costs. By taking the right path, federal CIOs can achieve sustainable cost reduction over time. All federal agencies come from a different starting place. Before beginning the IT cost-reduction journey, understand your agency’s: Urgency of the mandate for change Budget for change 2 Appetite for risk Distance to the destination Crossing over from IT provider to mission enabler Federal IT Now Destination IT Savings 1. Measure against Mission Survey the agency’s mission goals and outline what IT can do to support those goals. 2. Rank Importance Rather than spending a lot on IT that adds little value, prioritize IT investments that align with the mission. 3. Align IT Spend To Priorities Get a greater return by investing in IT that supports mission objectives. 1 3 3 IT cost reduction that only focuses on components—hardware, software and data centers—won’t lead to sustainable savings. $ $ ! Halfway There One federal agency reduced its contractor usage by one-third, saving approximately $9 million per year. $9 Million Per Year A state agency’s IT department retired $8 million in non-strategic projects to save more than $210 million in just two years. $210 Million In Two Years A federal agency prioritized IT projects to achieve approximately $8 million in annual savings. $8 Million Annually Need help on your route to reducing IT costs for the long run? Contact: Tracy Iseler at [email protected]; Jim Collier at [email protected] or Jim Lipinski at [email protected] For more ideas on how to develop your agency’s overall efficiency strategy, visit accenture.com/govefficiency Follow us on Twitter at @AccentureFed and on LinkedIn. About Accenture Federal Services Accenture Federal Services is a U.S. company, with offices in Arlington, Va., and is a wholly owned subsidiary of Accenture LLP. Accenture’s federal business serves every cabinet-level department and 20 of the largest federal organizations with clients at defense, intelligence, public safety, civilian and military health organizations. About Accenture Accenture is a global management consulting, technology services and outsourcing company, with more than 305,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com. Optimize infrastructure and employ technology to save money 25x ROI when you balance IT service cost reduction with improved performance 10x ROI when you align IT and mission strategies to create an IT roadmap Mission-led technology investments Federal IT Future:

Transcript of This Way to Federal IT Cost Reduction...achieve sustainable cost reduction over time. All federal...

Page 1: This Way to Federal IT Cost Reduction...achieve sustainable cost reduction over time. All federal agencies come from a different starting place. Before beginning the IT cost-reduction

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This Way to Federal IT Cost ReductionShrinking budgets, increased expectations and a rapidly changing federal environment. Sound familiar? These austere times call for radical measures when it comes to cutting IT costs. By taking the right path, federal CIOs can achieve sustainable cost reduction over time.

All federal agencies come from a different starting place. Before beginning the IT cost-reduction journey, understand your agency’s:

Urgency of the mandate for change

Budget for change

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Appetite for risk

Distance to the destination

Crossing over from IT provider to mission enabler

Federal IT Now

Destination IT Savings

1. Measure against MissionSurvey the agency’s mission goals and outline what IT can do to support those goals.

2. Rank ImportanceRather than spending a lot on IT that adds little value, prioritize IT investments that align with the mission.

3. Align IT Spend To PrioritiesGet a greater return by investing in IT that supports mission objectives.

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33IT cost reduction that only focuses on components—hardware, software and data centers—won’t lead to sustainable savings.

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!Halfway There

One federal agency reduced its contractor usage by one-third,

saving approximately $9 million per year.

$9 Million Per Year

A state agency’s IT department retired $8 million in

non-strategic projects to save more than $210 million

in just two years.

$210 Million In Two Years

A federal agency prioritized IT projects

to achieve approximately $8 million in annual

savings.

$8 Million Annually

Need help on your route to reducing IT costs for the long run? Contact: Tracy Iseler at [email protected]; Jim Collier at [email protected] or Jim Lipinski at [email protected]

For more ideas on how to develop your agency’s overall efficiency strategy, visit accenture.com/govefficiency

Follow us on Twitter at @AccentureFed and on LinkedIn.

About Accenture Federal ServicesAccenture Federal Services is a U.S. company, with offices in Arlington, Va., and is a wholly owned subsidiary of Accenture LLP. Accenture’s federal business serves every cabinet-level department and 20 of the largest federal organizations with clients at defense, intelligence, public safety, civilian and military health organizations.

About AccentureAccenture is a global management consulting, technology services and outsourcing company, with more than 305,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com.

Optimizeinfrastructure and employ technologyto save money

25x ROI when you balance IT service cost reduction with improved performance

10x ROI when you align IT and mission strategies to create an IT roadmap

Mission-led technology investments

Federal IT Future: