Analyzing the 2009 Federal Budget – $71B in IT spend

Other Posts
Jan 28, 2009

I was researching some government data this afternoon and noticed that the 2009 Federal budget had been posted as well as some analytical perspectives.

Let’s skip right to page 157 in the analysis, a section titled INTEGRATING SERVICES WITH INFORMATION TECHNOLOGY, which provides a discussion of the “$71 billion for Information Technology (IT) and the associated support services” that the President (Bush) had proposed. This represents a 3.8% increase over the 2008 budget, but it’s possible additional or reduced government spend by the Obama administration may change this figure.

There are a few good hints about federal IT investment strategies. At the very beginning of the document, we learn that  “departments and agencies continue to focus on…securing our systems and data… [and] reducing duplication and related costs.” This does not imply data de-duplication but rather cost de-duplication from siloed agency systems. To that end, “inter-agency task forces” have been established to look at various line-of-business opportunities for system consolidation. In particular the article highlights these areas:

– Case Management;
– Federal Health Architecture;
– Financial Management;
– Human Resources Management;
– Grants Management;
– Information System Security;
– Budget Formulation and Execution;
– IT Infrastructure; and
– Geospatial.

The government identifies $7.3B in annual legacy system spend that could potentially come under this consolidated E-Gov and LoB initiative umbrella. For now, they estimate over $500M in costs that have been saved.

Time for considerations — first, if you’re involved in any of these areas, make sure you understand the details of the programs that may affect your stakes moving forward. More important is the big picture, though — the US government, perhaps the biggest customer of all, is realizing substantial cost savings by rationalizing its IT infrastructure. The approach is also telling — they’ve selected some processes (Case Management), functions (Human Resources Management), and services (Security) that are ubiquitous across agencies.

One of the most common questions we get from content technology customers is “So how do I do this?” This example highlights that although an enterprise content strategy is preferred, often the best approach starts by identifying a limited set of processes, functions, and services to target for improvement.

More blogs from

2016 InfoTrends, Inc.

WordPress Appliance - Powered by TurnKey Linux