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California Saves $400 Million from IT Capital Planning, Deputy CIO Says

California expects to save $1.5 billion over five years from a statewide IT consolidation.

by / November 30, 2009

California state government has achieved more than $400 million in savings and cost avoidance in 2009 since the state released its five-year capital plan for IT spending, according to California's chief deputy to the state CIO.

"The process specifically focuses on what the state's emerging needs for IT are, and allows us to ensure prioritization and alignment with the state's policy and programmatic standards," said Adrian Farley, in testimony to a legislative committee that met in November.

The Office of the State Chief Information Officer (OCIO) oversees 100 large IT projects across the state, as well as 500 other small to medium-size projects that are under way in state agencies and departments, according to Farley. In all, these projects total $7 billion in spending over 11 years, he said.

California has implemented methodologies for project management and risk management over the past year, including a digital dashboard that tracks IT projects.

The OCIO was created in 2006 through legislation. This year, Gov. Arnold Schwarzenegger approved a consolidation and reorganization of the state's IT services that gave OCIO and state CIO Teri Takai more control of the state's enterprise architecture.

"It provided the state CIO with authority for IT procurement policy as well as enterprise IT management, and it achieves the consolidation of multiple kinds of contracts," Farley said. The state estimates it will save approximately $1.5 billion over the next five years because of the consolidation, he said.


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