In December 2022, we hired a financial expert to update the ITS cost model, and have set specific goals for the update including:
- Increased detail with services grouped in understandable functions
- Increased transparency with clear explanations for what is included in each function
- Improved compatibility with external controls such as SWCAP, grants, and other federal programs
- Improved accountability for large projects to ensure one agency does not subsidize another
- Attributing costs by usage, where possible, to allow agencies input on their costs
As development has progressed, we coordinated with analysts from the Division of Financial Management (DFM) and Legislative Services Office (LSO) and with seasoned financial officers in the most financially complex agencies to ensure we were on the right track. The new model will apply to the 2025 fiscal year and will include three main components:
- Base service costs by function distributed on the number of Microsoft 365 (or equivalent) licenses.
- Utilization costs, where service use by agency can be reliably captured.
- Large-project support costs, ensuring appropriate resources are dedicated to agency projects.
Revamping the cost model is a complex undertaking, but given the high cost of technology and tech support in the modern age, it’s a critical initiative to deliver for our customers.