Today’s financial and budgetary pressures have pushed governments to explore new ways to generate revenues, increase collections and reduce costs without raising taxes. With government agencies frequently running aging legacy systems and outdated information technology (IT) infrastructure, truly enhancing support for the public often requires an upgrade of existing IT solutions.

Traditionally, IT modernization projects for these critical systems requires a significant upfront capital investment for infrastructure and staffing; however, government is understandably cautious to invest in new staffing or programs to begin or sustain these efforts. Even for systems supporting revenue-generating activities that will pay for themselves, governments either lack the funding to initiate a project or are cautious before making new commitments. Therefore, governments continue to run their operations on outdated systems that cost them millions of dollars in either lost revenues or increased operational costs due to inefficiencies and lack of capabilities.

To overcome these financial challenges, many public sector organizations are turning to technology partners that have the capability to deliver IT modernization efforts which are funded only when and if additional revenues are realized as a result of the project. This benefits-funded model allows the IT project to pay for itself—while reducing the level of risk assumed by government, thus eliminating the need to increase taxes or assume additional debt.