MA

State UI Modernization and the Difficulties of Consortium-based Systems Development

Published: December 19, 2013

Social Services

While vendors can deliver solutions that to an individual state, the difficulties presented by a consortium make it unlikely that solutions will meet the needs of all or be portable.

The Government Accountability Office (GAO) found that most states (both individually and in consortia) are struggling to modernize their unemployment (UI) insurance systems. The finding regarding the difficulties of modernizing IT systems will be familiar to any IT vendor. However, the findings regarding the difficulties inherent to IT consortia provide solid insight for vendors, who often overestimate the potential value of such arrangements.

Deltek's inaugural Market Driver Research Brief provides a high level overview of the GAO's findings along with some vendor recommendations for incorporating consortia into their business development (BD) strategies.