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Feb 2017 - IDC Perspective - Doc # US42268717

Government IT Services Transformation: Leveraging Performance Management Tools with Strategic Cost Metrics

Authors: Thom Rubel, Robert Multhaup

This IDC Perspective describes five strategic metrics that government CIOs and IT financial managers can exploit and use to leverage existing federal monitoring tools to better demonstrate to senior executives and oversight entities the effectiveness and efficiency with which IT is managing appropriated funds. It explains the service portfolio optimization metric, innovation metric, sourcing metric, "black hole" metric, and cloud versus on-premise metric. These metrics require that IT has a good understanding of its service portfolio and how its assets and resources are costed and consumed. However, for IT to remain commensurate with outside providers, CIOs and other senior IT executives must arm themselves with metrics that prove that IT is making strong progress in service and cost management and can compete with the outside market. This study enables them to use metrics to support IT's essential role in the department and/or agency.

"CIOs who spend time and effort to go beyond traditional cost center reporting and develop a service portfolio and cost model that can generate the set of five metrics in this report will be in a much stronger position to meet the spirit and goals of FITARA," says Thom Rubel, adjunct analyst with IDC's Research Network.

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