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The State Spent $967M on IT-Related Contracted Services in Q1

Across Texas state government, Deloitte and Rackspace garnered high spending for purchased contracted services; additionally, monies for disaster response totaled at least $85 million in this spending category.

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State agencies spent more than $967 million on IT-related contracted services in the first quarter of the year, with Deloitte Consulting topping the list.

The Comptroller’s “Payment to Payee” visualization shows 154 agencies making 29,152 purchase orders among 3,870 vendors during January, February and March.

According to the visualization, here are the top five IT companies on the list, with rounding:
  • $63.7 million with Deloitte Consulting LLP, which provides audit, consulting, financial advisory, risk management and tax services
  • $55 million with Rackspace US Inc., which offers IT services and public cloud management
  • $32.4 million with Atos IT Solutions and Services, which offers IT services, mainframe services, cloud services and various products
  • $23.3 million with AT&T Corp., which provides telecommunications, media and technology services
  • $14.8 million with Accenture LLP, which provides management consulting and professional services

High-dollar contracted services, not specifically IT, were also made. They included:

As to spending categories, the state spent $372.4 million on purchased contracted services, $216 million on IT services and $140.2 million on DIR payments to the statewide technology center.

The periodic reports of spending on IT goods and services by agencies and departments in state government are compiled by Industry Insider — Texas as a way of highlighting procurements and trends.
Rae D. DeShong is a Dallas-based staff writer and has written for The Dallas Morning News and worked as a community college administrator.