IT Outsourcing and Consolidation Could Save North Carolina Millions

State could save $57.6 million in IT costs, according to report.

by / April 22, 2011

North Carolina could save $57.6 million in IT costs through consolidation and outsourcing over a five-year period, according to an assessment released by state CIO Jerry Fralick, on Wednesday, April 20.

Conducted by Technology Partners International (TPI), a global sourcing advisory firm, the report identified four key areas that would result in considerable savings. They are:

  • Outsourcing mainframe services, including all hardware, software, associated support functions and disaster recovery -- $37.2 million
  • Outsourcing Wide Area Network (WAN) services, including network monitoring and management, planning and design services, network connectivity and operations and network provisioning management -- $6.2 million
  • Consolidation of IT service desks at four state agencies into the North Carolina Office of Information Technology Services (ITS) -- $8.9 million
  • Consolidation of servers from five state agencies into ITS -- $23.8 million

TPI estimated the costs for implementing the changes would run approximately $18.5 million. A team of agency information officers and other state personnel will evaluate the assessment and make further recommendations to Fralick on how to proceed.

“Ultimately we are seeking a reasonable, balanced and achievable approach that will generate real savings while minimizing risks to the vital services provided to our citizens,” Fralick said in a statement.

The TPI assessment was ordered by North Carolina Gov. Bev Perdue last year, as a part of the state’s ongoing streamlining efforts.

A copy of the TPI report is available on the North Carolina Office of the Chief Information Officer website.