recommended reading

White House to agencies: Cut wasteful IT spending, then reinvest in smarter tech

iofoto/Shutterstock.com

The Obama administration is requiring all agencies to propose budget cuts to reduce information technology spending by 10 percent, according to a guidance released by the Office of Management and Budget.

The cuts would come in fiscal 2014, and be calculated based on the average IT spending in fiscals 2010 through 2012. The White House wants the cuts to focus on imprudent IT expenditures.

“Too often spending on IT is still wasted on duplicative investments, missed opportunities to leverage economies of scale, rising operational costs that starve new development, and mismanaged projects that lead to cost overruns and schedule slippages,” the guidance states.

The guidance calls for a reinvestment of between 50 and 100 percent of the savings into “priority” IT programs.

“Agencies should only propose reinvestments which demonstrate a favorable return on investment (quantitative or qualitative) to the agency within 18 months from the enactment of FY 2014 appropriations,” the guidance explains.

OMB recommended optimizing data management, improving energy efficiencies of IT equipment and improvements to citizen services among its suggestions for where agencies should reinvest savings.

The Defense Department would be the hardest hit by the cuts, having to trim their IT spending or reinvest more than $3.5 billion, according to OMB. The office advised agencies such as Defense to make the cuts from duplicative, underperforming and low-priority investments.

The guidance comes after President Obama cut federal IT spending by 1 percent in fiscal 2013.

(Image via iofoto/Shutterstock.com)

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats

JOIN THE DISCUSSION

Close [ x ] More from Nextgov
 
 

Thank you for subscribing to newsletters from Nextgov.com.
We think these reports might interest you:

  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

    Download
  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

    Download
  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

    Download
  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download

When you download a report, your information may be shared with the underwriters of that document.