“This data just reinforces how alarmingly poorly run U.S. government agencies are with their IT spend. Why only a fraction of external IT service spending is actually managed via an established contracting model in this day and age is baffling—and indicates a huge amount of unnecessary wastage of taxpayer dollars,” says Phil Fersht, CEO of outsourcing analyst firm HfS Research. “Also remember that external IT spend is only a fraction of total IT spend. In some cases, the total spend per agency could amount to two or three times the external IT spend.”
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