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Tracking the Spend: $313M by OTSI for IT Services in FY 2023-24

Business professional and administrative and IT consulting services accounted for $200,627,685 in spending — roughly 64 percent of the office’s total expenditure on IT services.

The Office of Technology and Solutions Integration (OTSI), part of the California Health and Human Services Agency (CalHHS) and formerly known as the Office of Systems Integration, spent a little over $300 million in fiscal year 2023-24 on IT services.

The data comes from a dashboardhosted by the California Department of General Services’ Procurement Division. It breaks down spending within the IT services category by UNSPSC(United Nations Standard Products and Services Code) numbers, a global standard that classifies types of expenditures. (All numbers are rounded.)

Given the nature of OTSI’s forward-looking work in technology, it’s not surprising that the single largest expenditure within OTSI’s $313,256,722 total spend on IT services was in the category of “business professional and administrative and IT consulting services.” That one category accounted for $200,627,685 in spending — roughly 64 percent of the office’s total expenditure on IT services.

In all, the five largest expenditures accounted for more than 97 percent of the total spend on IT services.

The next four largest UNSPSC categories of spending, along with their percentage of the whole, are as follows:
  • $82,089,868 for computer hardware maintenance and support; 26.2 percent.
  • $10,957,300 for IT service delivery including cloud-based platform as a service and platform software components as a service; 3.5 percent.
  • $6,621,868 for computer services, software or hardware engineering, and systems integration design; 2.1 percent.
  • $4,061,793 for business intelligence consulting services; 1.3 percent.

More information about OTSI’s projects and priorities can be found online. OTSI’s director is Adam Dondro, who’s also the agency chief information officer for CalHHS.

The periodic reports of spending on IT goods and services by agencies and departments in state government are compiled by Industry Insider — California as a way of highlighting procurements and trends.
Dennis Noone is Executive Editor of Industry Insider. He is a career journalist, having worked at small-town newspapers and major metropolitan dailies including USA Today in Washington, D.C.