Tracking the Spend: Agencies Spent $574M With DIR in FY24

Texas spent about $740 million with five private-sector IT vendors during Fiscal Year 2024, although a large portion of IT spending was with the state’s own Department of Information Resources (DIR).

State agencies sent about $574 million to DIR for the statewide technology center and additional IT-related spending such as telecommunications, fees, professional services and computer services.

As for private-sector vendors, here are the five largest amounts that all state agencies combined spent in FY24, according to the Texas Comptroller’s “Payment to Payee” visualization:

• $261.4 million to Deloitte Consulting LLP, which provides IT services, development and consulting, among other services
• $202.7 million to Rackspace US Inc., which offers IT services and public cloud management
• $119.4 million to Atos IT Solutions and Services for DIR payments to statewide technology center
• $89 million to AT&T Corp. for DIR payments to statewide telecommunications network and statewide technology center
• $67.7 million to AT&T, in a separate line item, for various services including IT and communications

Regarding specific expenditures in the fiscal year, the state spent $2.9 billion on purchased contracted services and $912.7 million on IT services.

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.

Editor’s note: This story has been altered to clarify the spending relationship between state agencies and DIR.