U.S. Federal Government Hard Line on IT Spending

January 26th, 2017

A recent Gartner article examined the U.S. Office of Management and Budget (OMB) announcement about critical project reviews and spending freezes and its consequences for U.S. federal agencies. Government CIOs and all CIOs involved with government business should take notice of the acceleration in OMB’s action toward greater value for money in preparation for the decline in spending foreseen in the next budget.

The OMB targeted increased IT spending transparency and review of selected critical projects toward the implementation of better practices. In an executive memo aimed at tackling inefficient and ineffective projects, and instilling better practices in project and portfolio management, the OMB directive is consistent with similar initiatives that are taking place globally.

Based on key findings, Gartner analysts recommend that Government CIOs take proactive measures to rapidly improve project and portfolio management practices. This calls for the development of key metrics in the areas of funding, procurement and project management for all ongoing and planned IT projects. Given change management and governance issues that are typically the major causes of project failures, CIOs should implement dashboard and review processes that use metrics to detect patterns or trends, and employ corrective actions. Those CIOs concerned with the government should join rather than resist this initiative, and take a proactive attitude in helping the OMB to achieve optimum performance and value.

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