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eGovernment Solutions That Create Value

Cost Savings

NIC’s transaction-based self-funded approach allows agencies to save money by delivering eGovernment services at no cost to the general fund.

With self-funded eGovernment, governments bypass the appropriations process by applying modest transaction fees on select business-focused online services. NIC’s flexible funding approach is now used by 27 states and 3,500 agencies to build, manage, market, and enhance eGovernment solutions without requiring a penny from the general fund.

At NIC, we do more than just talk about the benefits of eGovernment. We work closely with our government partners to measure and monitor how online services are increasing statutory revenues, cutting costs, and generating greater efficiencies for federal, state, and local governments. A few examples of recent performance benefits of NIC’s self-funded eGovernment solution include:

Increased statutory revenues

The Virginia DMV used the self-funded model to generate an incremental $7 million over two years with enhanced marketing for driver records.

Cost savings

  • In West Virginia, self-funded eGovernment delivered $10 million in value during the first two years of our contract by eliminating infrastructure, technology, and application development costs for the state.
  • Utah’s four-day workweek, which helped make possible because more than 600 services were available online when state offices were closed, reduced state spending by more than $4 million in the first year.

In Utah, a public meeting notice service allows agencies to save $673,000 per year in internal costs.

Immediate access to proven eGovernment applications

NIC has built more than 7,500 eGovernment services that are installed across the country. This knowledge library allows us to customize and rapidly redeploy proven eGovernment solutions rather than designing every solution from the ground up. This means our government partners benefit from accelerated revenue generation and cost savings.

Increased constituent convenience and efficiency

Utah’s business registration services integrates the requirements of federal, state, and local agencies into a single site and has supported Utah entrepreneurs by saving 184,000 work hours and 11,525 gallons of fuel each month.

Measurements of eGovernment Value

NIC continues to measure the value of the no-cost eGovernment solutions we deliver to our government partners through the proven self-funded approach. Among the ways we track the benefits of self-funded eGovernment:

  1. Value of NIC personnel time vs. current market rate for existing services.
  2. Value of agency personnel time redeployed to other high priority projects in the work queue.
  3. Direct cost of temporary personnel not hired.
  4. Activity-based cost analysis for offline vs. online services.
  5. Cost avoidance for not hiring vendors to build & manage eGovernment projects.
  6. Operational cost avoidance (including reduced materials production, printing, postage, and warehousing costs)
  7. Value of NIC’s investments in infrastructure buildout & refreshes, software, and marketing.
  8. Incremental statutory revenue (through new revenue streams created by unique online services as well as higher transaction volumes for current services).
  9. Interest income from faster accounts payable collections.
  10. Reduced turnaround time and the resulting operational efficiencies for agencies and constituents.
  11. Protection of federal & state grants that are contingent upon launching specific technology solutions.

For More Information

photo of Robert Chandler Robert Chandler
Vice President of Sales

NIC Inc. is the nation's leading provider of official government portals, online services, and secure payment processing solutions. The NIC family of companies provides eGovernment solutions for more than 3,500 federal, state, and local agencies in the United States.