Mark Hanson - November 07, 2019

How Public Sector Agencies Make Smarter Technology Investments

By 2022, Gartner forecasts that global public sector IT spending will reach more than $632 billion. Much of this growth is at the federal and local levels, where government agencies are investing in IT modernization to deliver services more efficiently.

In the U.S., the President’s Management Agenda calls for every agency to use technology business management (TBM) within three fiscal years. TBM is a decision-making framework that enables IT to manage its business, deliver cost-eff­ective services and partner with organizational stakeholders to create value.

With a $51B total IT budget planned for 2020, U.S. Federal agencies are prime candidates to optimize their spending without compromising their mission deliverables.


Download: Apptio TBM Unified Model (ATUM): The standard cost model for IT in the public sector


State, local and educational entities (both K-12 and higher ed) should also take heed. Adopting TBM can help to increase an organization’s ability to optimize costs, align IT spend with the organization’s mission and unearth funding for modernization efforts.

Unfortunately, a high percentage of federal and local IT budgets are still allocated to the maintenance and operations of legacy technologies (e.g., 80 percent of the 2019 U.S. federal IT budget). Many organizations don’t have a system in place that provides a full view of what’s already been spent – or a look forward to planned spend and how it will help fulfill the mission.

In response, many agencies are adopting Technology Business Management (TBM) solutions, which make it easier to manage multi-year budgeting cycles and take a more proactive approach to optimizing the value of your IT portfolio. And unlike spreadsheets and other manual solutions that involve hours of repetition, TBM solutions such as Apptio can automate common tasks so it’s easier to scale and sustain over the long term.

There are dozens of public sector agencies, state and local governments, and higher education institutions that use Apptio. For example, over the past four years the U.S. General Services Administration cut 17.8% from its IT budget, or well over $100 million recurring per year. The Australia state of New South Wales is using Apptio to optimize and retire legacy applications and shift some of the savings it achieves toward modernizing its IT infrastructure.

And another government agency is using Apptio to understand cloud spend across multiple providers, forecast future cloud spend & capacity needs, understand total cost of cloud (including labor, security, and software costs), improve tagging quality & governance, recover cloud costs from business units, and optimize usage & purchasing of cloud – including reserved instances.


Download: Apptio TBM Unified Model (ATUM): The standard cost model for IT in the public sector


Unlike any other TBM solution, Apptio uses the Apptio TBM Unified Model® (ATUM®), a framework that helps agency and mission owners marry financial cost data with IT operational data to produce granular, actionable IT cost analytics. With Apptio’s repeatable TBM solution, you can analyze IT costs, utilization and consumption to reduce risk and maximize the organization’s ability to deliver mission services.

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