1、 2023 Boston Consulting Group1The US federal government has made significant investments in IT across its agencies to catch up totechnology adoption rates in the commercial sector.And while government IT is growing quickly incapability,it is also growing in cost.The Department of Defense(DoD)alone b
2、udgets over$45 billionannually to IT,and in 2022 President Biden called for an 11%boost in IT budgets for federal civilianagencies.Additionally,the number of technologies and products that the DoD is allowed to purchasehas increased significantly,complicating the decision calculus and increasing the
3、 need to ensureoptimized and intentional spend.How the US Government Can Reduce ITCostsAUGUST 28,2023 By Ashwin Bhave,Greg Boison,Matthew Schlueter,Ryan Ordway,Noelle Herring,Mack Andrews,and Vanessa HernandezREADING TIME:15 MIN 2023 Boston Consulting Group2Federal agencies have made numerous effort
4、s to deploy their IT funds more efficiently,from costtransparency and government-wide category management to agency-specific cost reduction efforts.Yet,substantive cost curtailment and spending improvements have been rare.From our case experience,we have identified the leading issues behind this fai
5、lure of US governmentagencies to generate IT cost improvement,especially when compared with commercial peers,acrossthree key categories:budgeting and funding processes,savings program execution,and governmentconstraints.And we offer five key strategies that can close the gap to commercial best pract
6、ices andimprove cost outcomes.Budgeting and Funding ProcessesShadow IT.Whereas commercial organizations tend to focus on expenditures,government agenciesfocus on program budgets,with IT just one of many embedded components.This approach typicallygives little visibility into“shadow IT”IT spending tha