State loses technology chief

Man responsible for big IBM contract resigns unexpectedly.

By Mike Ward

AMERICAN-STATESMAN STAFF

Wednesday, December 06, 2006

Larry Olson, the state's chief technology officer and the architect of Texas' push into high-tech innovation and outsourcing, resigned unexpectedly Tuesday.

Olson, 54, said he had accomplished what he came to Texas to do in May 2004 and will be looking for a new challenge.

He will leave the helm of the 220-employee, $31 million Texas Department of Information Resources at the end of December.

"I never planned to do this for long," Olson said shortly after notifying his agency's seven-member governing board of his decision. "I don't know what I'll be doing next, but I don't think I'll be going into public service again."

The board named Brian Rawson, director of the agency's service delivery division and a top aide to Olson, interim chief technology officer. Rawson has more than 20 years' experience in government agencies and is the former chief information officer at the Texas Education Agency.

Olson said the board could name a replacement to fill the $135,000 post as soon as March.

As the state's first chief technology officer, Olson oversaw the development of a data and information technology management policy that recently culminated in the award to IBM of an $850 million contract to provide technology services to 27 state agencies, with a multimillion-dollar cost savings to taxpayers.

In his resignation letter to agency board Chairman William Transier, Olson cited successes including centralizing some technology services, renegotiating the TexasOnLine.com partnership agreement that will generate about $36 million in savings, and arranging the IBM contract that he said will transform data center and disaster recovery services in the state, while saving the state $159 million over the next seven years.

Olson said projects undertaken during his tenure have generated savings to Texas taxpayers of more than $270 million.

"When we chose Larry for the position we knew there needed to be a transformation in the way DIR did business," Transier said in a statement. "As I look over the accomplishments of the past two years I know that every one has Larry's stamp on it."

A Houston native who grew up in San Antonio, Olson worked for information technology companies in the Northeast for several years before joining the State of Pennsylvania. His reputation as a government IT guru was quickly made.

He was Pennsylvania's first chief technology officer and served as deputy secretary to former Gov. Tom Ridge, who later became President Bush's homeland security chief, before returning to Texas as the state's first chief technology officer. At the time, Gov. Rick Perry bragged that the hiring of such an industry star was quite a coup.

Perry applauded Olson for doing "an exemplary job" at taking the Department of Information Resources to the next level, said Robert Black, the governor's press secretary.

"He has saved countless taxpayer funds because of his efforts to streamline the information processes in this state," Black said. "He will be sorely missed."

When he arrived, Olson said his goal was to change how Texas government used information technology to its benefit. "When that was baked, when that was accomplished, then it's time for me to leave," Olson said.

He said he does not plan to leave Austin. When he took the Texas job, he said he would be closer to his parents who live in Georgetown.

Larry Olson

Position: Chief technology officer, State of Texas

Age: 54

Birthplace: Houston

Education: Texas Tech University graduate

Details: Heads state Department of Information Resources, with 220 employees and a $31 million budget. Agency recovers 98 percent of costs through fees.

Source: Department of Information Resources