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Monday, August 14, 2006

OMB to agencies: Measure IT costs savings from e-gov

"With the pressure mounting from Capitol Hill to prove how much money e-government is saving agencies, the Office of Management and Budget yesterday directed agencies to begin measuring those reduced costs.

In a memo from Karen Evans, OMB's administrator for IT and e-government, agencies by Sept. 30 must begin measuring costs savings by developing baseline cost estimates and identify projects that are due to be replaced, shut down or modified because of an e-government or Line of Business Consolidation initiative.

'With the E-Government initiatives deployed and operational, and the LOB initiatives underway, we are currently realizing the goals of improved citizen services, and increased efficiency and effectiveness,' Evans said. 'We must now concentrate on identifying and realizing the cost savings these initiatives are providing on a governmentwide basis.'

One of the main criticisms of e-government from the Hill is the inability to show the value or savings for the money the agencies are spending on the projects. "

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