IT Optimization in the Public Sector

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By KPMG LLP | Nov. 29, 2012




In current economic times, "doing more with less" in government is the new normal.

For many government IT entities, the essence of the new normal is trying to deliver services from a mix of locations and organizations, balancing distributed and decentralized models, and trying to mitigate the inherent inefficiencies, redundancies and expenses that these models can create.

In response, public sector organizations have increasingly begun adopting and expanding their use of shared services for horizontal functions. Learning from their colleagues in the private sector, IT shared services in the public sector have risen through maturity levels faster than their commercial predecessors by leveraging many of the best practices and methodologies, while avoiding the mistakes of early adopters.

The question now is, "what’s next?"

In early 2012, KPMG conducted a series of in-depth interviews with IT executives across a mix of public sector organizations that included the states of Pennsylvania, Florida, Georgia and Virginia; the Inter-American Development Bank; a major Midwestern city; and the California State University System.

The objective of the research was to analyze leading public sector organizations’ use of shared services and to assess the impact shared services brings to IT optimization and service delivery. In this report, IT Optimization in the Public Sector, developed by the KPMG Shared Services and Outsourcing Institute, we present those findings, and identify and evaluate options for delivering business support services in the most effective and efficient means possible. 

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