“A coalition of tech companies has estimated that the federal government could have saved $345 billion over the last 25 years if it had purchased more commercial off-the-shelf solutions, rather than building systems from scratch.”
“The Alliance for Digital Innovation — a relatively new group reportedly organized by Amazon Web Services — reached that figure by taking the government’s average annual spending on IT, which comes to about 6.4 percent of its discretionary funding, and calculating the savings if that number were 5 percent, a figure closer to trends in the private sector. The group selected the…”
“The report comes as the Trump administration, looking to take cues from the private sector, continues to emphasize data-driven decisions about IT spending at agencies. Commercial off-the-shelf solutions (COTS) are inherently going to save the government money, …”
“The administration’s interest in COTS arose during the May 7 confirmation hearing for Michael Wooten, President Trump’s nominee to be administrator of the Office of Federal Procurement Policy in the Office of Management and Budget.” Read the full article here.
Source: Government wasted billions building customized IT over last 25 years, industry group says – By Dave Nyczepir, May 20, 2019. FedScoop.