Like CIOs, Bush Budget Leans On IT

2007 Budget "Managing for Results,"

The Federal Government spends almost $65 billion on IT each year. Federal agencies are working to ensure this investment produces the expected results. •Federal agencies are working to ensure that all IT systems are properly secured and data are appropriately protected. Currently, 85 percent of Government systems have been certified as secure, up from 77 percent last year. • •Thirty-two percent of agencies have fully implemented processes to plan and monitor their IT investments, and on average are achieving at least 90 percent of their costs, schedule, and performance goals. While this may represent an improvement from the past, it falls significantly short of acceptable performance levels. The Administration will devote particular attention over the next year to improving the performance of Federal IT investments.

(Emphasis added.)

In a federal budget of more than $2.7 trillion (that's "trillion," with a "t"), almost one-third of all IT projects have no ROI documentation. As dollars get tighter while the government works to reduce the deficit, that will likely be a major area of attack.

In short, the federal government seems even pickier than a Fortune 500 CIO in demanding return on investment. (Although, the fact that 15 percent of government IT systems and data have yet to be "certified as secure" might raise a few eyebrows. Which 15 percent?)

The Bush Administration is also trying to do what many corporate CIOs are now trying to do: save money by upgrading and consolidating its technology.

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For example, you can find this in the proposed Agriculture Department budget for 2007:

The Forest Service has reduced costs and improved agency performance by restructuring its information technology, human resources, and budget and finance organizations as part of the President&'s Management Agenda. These efforts have led to the successful consolidation of upwards of 1,400 jobs that will save the taxpayers $115 million over three years.

And this:

To streamline operations, (The Agriculture Department's Farm Services Administration) must consolidate offices and invest in information technology tools to improve business operations and service delivery to farmers.

Memo to the IT industry: Your biggest customer is counting on you more than ever.