· While many states are working toward consolidation, only a limited number have attained widespread consolidation progress.

· In most states where consolidation has occurred, savings have been substantial. In what was considered a failed effort, Florida saved $10 million in 2004, while Michigan saved $25 million in 2002 and 2003, and $47 million in 2004. Since 2004, Pennsylvania has saved $60 million.

· When undertaking consolidation, most states use a multiphased approach, targeting the highest-value return target first, then working on successively lower-value return targets.

· States have reduced the number of individuals supporting IT through the effective use of shared resources, justification of more extensive management tools (because they serve more users) and a reduction in the number of technologies requiring support.

· Through consolidation efforts, Michigan has provided the same level of services to state departments with 66.5 percent of the staff and 75.3 percent of the budget that it had before centralization.

· To have exemplary IT governance, a collaborative management style is essential.

· According to states that participated in a National Association of State Chief Information Officers survey, the most common challenges to consolidation are:

• work force resistance;
• seeking exemptions for state statutes and regulations;
• backlash when consolidation didn't meet business needs;
• unexpectedly high costs;
• seeking exemptions from federal statues and regulations; and
• failure to identify and adhere to service levels.

Source: Colorado Consolidation Plan