OMB looks for lines of business payoff

The Office of Management and Budget has begun a governmentwide analysis of how the three lines of business proposed as part of the fiscal 2007 budget could help the government cut costs and improve services.

An interagency task force for each of the new lines of business -- information technology infrastructure, geospatial operations and budgeting process -- will analyze the current state of systems and identify common solutions and target architectures. The task force will also develop a business case to be submitted for fiscal 2008 budget review, according to OMB.

After studying industry benchmarks and agencies' fiscal 2007 IT budget submissions, OMB officials say opportunities for savings exist. For example, by taking a more coordinated approach to spending on IT infrastructure, the government could save between 16 percent and 27 percent annually on its IT infrastructure budget over 10 years, which would add up to between $18 billion and $29 billion, officials say.

These three new lines of business will join six existing lines: financial management, human resources, grants management, case management, federal health architecture and IT security.

“We are pursuing a number of governmentwide opportunities to improve the effectiveness and efficiency of our IT investments,” said OMB Deputy Director for Management Clay Johnson.

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