Article Posted by P.K. Agarwal, Director, Office of Technology Services (OTech)

Over the past six months, the Office of Technology Services (OTech) has embarked on various cost cutting measures to reduce its fiscal year 09/10 spending by $14 million dollars. The effort encompassed detailed reviews of all existing services contracts as well as hardware and software maintenance contracts. In some cases entire contracts were cancelled while others were reduced or renegotiated to provide better pricing based on the actual services needed. This resulted in $6.2 million in contract savings.

OTech also examined existing technical service offerings which have very expensive fixed operating costs and very few customers utilizing the service. These service offerings were eliminated and the customers moved to a more cost effective solution which also helped them reduce their operating costs. This effort resulted in a savings of $2.3 million dollars.

Finally, the Data Center focused on redirecting and reducing staffing levels where possible by flattening the organization and combining staff assignments and skills to enable proper technical support staff coverage with fewer staff. An example is the centralization of the Data Center’s 24X7 Help Desk and Network Operations Center staff into one location with remote access to all of the Data Center’s computing facilities. This in addition to the savings due to furloughs resulted in $5.5 million savings in personal services.

OTech is continuing to look for opportunities to reduce costs in all areas as we work with our customers to optimize and standardize technology offerings throughout the state.