OIT Enterprise Services Rates for FY08-09
By Craig Hitchings – Office of Performance Management and Administration
OIT is nearing completion of another transformation milestone . . . new OIT rates that reflect the consolidation of IT resources for improved delivery of IT services. As an internal service fund, OIT is responsible for recovering all costs incurred in support of our customers and providing stable rates so customers can budget for IT expenses. In preparation for the FY08-09 State budget development, the OIT Enterprise Service Directors with support from the Performance Management and Administration group, have developed new OIT service rates that will be effective in July 2007.
The transformation of OIT added significant challenges to this process. The new rates include all IT professionals transferred and reassigned to OIT from the Agencies who support IT enterprise service delivery. For example, instead of a desktop support operation assisting and billing just several agencies, the new rate reflects desktop support provided by over 60 people assigned to Client Technologies supporting and billing all state agencies . . . an estimated 13,000 desktops and laptops. Most rates for Enterprise IT services will decrease, but the quantities billed across State Agencies will increase significantly. The quantity increases also include file services, server support, and other IT services formerly provided by IT personnel funded directly by our customers.
How will agencies fund this shift from personnel to IT services expenses through the rates? For FY07, OIT will maintain the current rate structure set in FY05 and directly bill agencies to absorb personnel expenses for the IT staff transferred. The State Budget Office has already transferred funds from agency personnel to administrative budgets to cover this shift in expenses for IT services during this “transition year”. Beginning in FY08, OIT will bill agencies at the new rates for services (applications, professional, voice, network access, desktop, and operational) in addition to the IT professionals supporting major agency applications that report to the Agency Information Technology Directors (AITD). OIT is working with agencies to develop their FY08-09 IT budgets by:
- Reviewing the current level of IT services provided and validating what needs to be sustained
- Projecting any added IT services required in FY08/09 to meet business needs defined by agencies
- Developing budgets using templates
- Assessing the shift from agency funded IT staffs to enterprise services rates
- Assessing impacts of rate increases and decreases
Over the month of June, the rates were presented in meetings of the IT Budget Committee and the IT Executive Committee. These groups include senior managers from State Agencies, Service Centers, and OIT, both are chaired by the CIO. Once finalized, the rates will be accessible from the OIT home page.