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State IT Budget Trends Report: Bellwether for Any CIO

By Dennis McCafferty on 2010-07-30


Whether or not you are a state CIO, we think you'll relate to these revealing findings about trends, spending and IT oversight. Throughout the U.S., state government IT budgets are expected to be reduced through the year 2013, according to a new report from the National Association of State Chief Information Officers (NASCIO). As with many organizations struggling in the private sector, state CIOs are considering tactics such as staff reductions, IT consolidation, shared services and "green IT" among the remedies to lower costs. What is most remarkable about the survey results is the similarity between tactics being considered by state CIOs and those we hear about from private-sector CIOs. There are also similarities in shortcomings. For example, the survey finds that even though CIOs are mindful of the expense of IT, many are not being proactive when it comes to tech-portfolio management or the measurement of the effectiveness of their IT resources. One silver lining that is, indeed, unique to government agencies is the federal American Recovery and Reinvestment Act of 2009 (ARRA), which is providing extra funding for states when it comes to health-care IT. Three of four CIOs now say their offices receive some form of ARRA funding. NASCIO, TechAmerica and Grant Thornton worked together on the report, which was developed from a 39-question survey/interview conducted with 40 state CIOs, deputy CIOs or those at equivalent positions. Read on for 14 important insights from the report. You can also download the full report, "The 2010 State CIO Survey: Perspectives and Trends from State Government IT Leaders."

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Two-thirds of state CIOs expect lower IT budgets from 2011 through 2013.

Only 13 percent of state CIOs expect an increase in IT budgets from 2011 through 2013.

58 percent of state CIOs outsource at least some of their IT infrastructure operations.

27 percent of state CIOs plan to expand outsourcing within the next three years.

66 percent of state CIOs use a shared-services model for some or all IT operations.

One-half of state CIOs are investigating the use of cloud computing, and one-third are running active or pilot cloud projects.

50 percent of state CIOs say they use a formal IT portfolio management process.

32 percent of state CIOs do not formally measure how IT contributes to agency missions and strategies.

20 percent of state CIOs say they use subjective measures to measure IT performance and how it contributes to progress made in agency strategic plans.

58 percent of state CIOs own and operate multiple data centers.

Two-thirds of state CIOs say that state agencies use social media such as Twitter and Facebook.

Three-fifths of state CIOs say their states are preparing social-media policies for state agencies.

46 percent of state CIOs oversee policies that mandate "green" IT.

31 percent of state CIOs are developing policies for "green" IT.

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