This financial analysis will examine the feasibility of creating a shared IT consortium among municipalities in and around Dane County. We are aiming to explore opportunities for collaboration that will reduce IT costs, increase efficiency, and improve service quality for local governments. Local municipalities want to modernize their IT infrastructure while working under tight budgets and limited resources. This project investigates whether a consortium can provide
a solution to these high costs and deficient IT services.
Our analysis found that many municipalities operate with inconsistent IT capabilities and varying levels of support. There is a large overlap in services and software used across communities, which opens up opportunities to consolidate. A shared IT service provider would allow municipalities to benefit from reduced costs through economies of scale, enhanced cybersecurity from a stronger provider, and 24/7 assistance with IT issues. Our recommendation is a phased rollout of a shared IT consortium, beginning with a shared service desk and IT support to allow municipalities to benefit from fast assistance and to build
trust early on. We recommend that municipalities collaborate to share software and infrastructure they are comfortable with in order to reduce costs. We also recommend setting up a unified governance structure to create accountability and fairness for all municipalities involved.
This report will include insights from stakeholder interviews and assessments, feasibility of shared service implementation, and case studies from successful consortiums. It will also outline a governance model, provider recommendation, and a cost-sharing model. Finally, we will evaluate political risks and funding opportunities for the consortium. All of this will be outlined in a rollout roadmap structuring immediate, short-term, and long-term implementation phases, culminating in our clear recommendation: the municipalities should move forward with forming a shared IT consortium.
Contact: UniverCityAlliance@wisc.edu
This report was completed by Badger Consulting, a student-run group on campus.