OMB Lines of Business Will Survive Administration Transition
Transactional and IT-heavy LoBs have the highest chance of helping agencies recognize savings.
Reston, VA (Issues Wire / Vocus) June 13, 2008 –- With the looming administration transition and budget constraints, uncertainty surrounds the future of OMB’s Lines of Business (LoBs) initiatives. But according to a recent report from INPUT, the authority on government business, the chances of most LoBs continuing into the next administration are high, primarily because they have shown progress in addressing apolitical government needs.
Transactional and IT-heavy LoBs have the highest chance of helping agencies recognize savings and increased efficiencies, but other LoBs hold future promise as well, provided that contractors can adjust their strategies and expectations to the various types of LoB missions.
INPUT’s analysis uncovered three categories of LoBs, based on maturity, goals, ability to standardize, and political and cultural impact, among other factors. Some are either part of a mature Shared Service Center (SSC) vision (e.g. Financial Management and HR LoBs) or an evolving Community of Interest (COI) focused on sharing best practices (e.g. Grants Management and Information Security LoBs). Some LoBs, such as the Federal Health Architecture and Geospatial LoBs, fall into a third category – Challenged Effort/Limited Constituency. “Agencies involved in the latter category can run into problems because the scope and mission may be too large for the handful of agencies that the LoB is intended to serve,” stated Lauren Jones, principal analyst for INPUT.
Contractors should be realistic about their roles in supporting government implement LoBs. For those focused on SSCs, contractors have a traditional role as solution provider. However, those structured around Communities of Interest will offer the best opportunity to influence agencies’ business and IT efficiency and standardization. “Contractors should be engaged in providing best practices, which could potentially influence standards and policy once these LoBs really get going,” stated Jones. “And it also establishes these contractors as partners focused on the success of the agency.” Current funding for LoBs is limited ($26 million for FY2008), but agencies will require more industry assistance as more progress picks up. Return on Investment (ROI) from most LoBs will be farther into the future, but the benefits to customer relationships can be seen now.
These findings and others were released in an INPUT Industry Insight Report, The Outlook for OMB Lines of Business. More details are available at www.input.com.
EDITOR’S NOTE: To speak with the report author regarding this release, please contact Helena Brito at hbrito@input.com or 703-707-4161.
About INPUT
INPUT is the authority on government business. Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. Over 1,300 member organizations, including small specialized companies, new entrants to the public sector, and the largest government contractors and agencies, rely on INPUT for the latest and most comprehensive procurement and market information, consulting, powerful sales management tools, and educational & networking events. For more information about INPUT, visit www.input.com or call 703-707-3500.
Proper use of name is INPUT
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