Understanding NCDIT Rates

The N.C. Department of Information Technology is committed to transparency and fairness in all facets of its work, including setting rates for services provided to other state agencies.

The department has established rates for the 2019-20 fiscal year using a consumption model. Under this model, the total cost of providing a service is divided by the consumption of that service. The result is the rate for that service.

Expenses ÷ Consumption = Rate


Expenses are comprised of four main components:

  1. Direct costs (costs required only for the service)
  2. Personnel costs
  3. Shared indirect costs (service desk, business relationship managers, security)
  4. Internal underpinning services (DIT services requiring other DIT services).


A reliable consumption forecast is critical for accurate rate setting and cost recovery. Consumption forecasts are based on current use of a service, trends, and formal agency commitments to using services. Understating anticipated consumption ultimately increases rates, while rates can be reduced if consumption increases.


Going forward, all agencies should pay their fair share. Any exceptions should be documented and other agencies should be aware of the impact. In the past, special negotiated rates for some agencies resulted in higher costs for others. Now, agencies will pay only for the services they consume.

NCDIT will continue to monitor industry benchmark rates. NCDIT rates higher than the benchmark rates will be reduced, outsourced or eliminated. NCDIT intends ultimately to drive down total service costs for agencies.

In the first year under this model, NCDIT estimates a $2 million reduction in costs to agencies. No agency will pay more this year and NCDIT will absorb any additional costs not anticipated by agencies.

The rate schedule now includes information about underlying data used to help calculate the rate.