Case Study: How The Internal Revenue Service's VMO Drove Millions In IT Cost Savings

Like many private sector companies, the US Internal Revenue Service (IRS) has faced challenges achieving a centralized view of IT products and services spend across disparate requisition and contract management processes. In 2008, the IRS established an IT vendor management office (VMO) to address these challenges, and the results have been impressive — more than $61.6 million in 2010 savings and $58.7 million in 2011 budget reductions — a cumulative two-year total of $120.3 million. This case study outlines the specific techniques used to achieve these cost savings and tips for success from the IRS's VMO.