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PingTone Helping State & Local Governments Reduce Budget Shortfalls by Outsourcing

Due to the downturn in the economy, state and local governments are facing budget deficits ranging from $34 billion to $38 billion collectively, forcing them to initiate revenue increases and cut basic services such as health care and education. According to the new report, “State Budget Troubles Worsen” by the Center on Budget and Policy Priorities (CBPP), over 25 states and the District of Columbia have already cut spending, drawn down available reserves or raised taxes in order to bridge budget gaps. At least 41 states anticipate continued shortfalls for 2010 and beyond.

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Among other new cost cutting strategies, state and local governments are actively pursuing and adopting Voice over IP (VoIP) technology for its immediate savings. “States spend millions of dollars annually on traditional telephone service. A conversion from old telephone service to PingTone outsourced Cisco VoIP service can yield savings of 20 to 50 percent,” said William Smedberg, President of PingTone Communications. “The speed and size of these savings make a meaningful impact as states fight to close budget gaps and save critical programs.”

About PingTone

PingTone Communications provides outsourced (hosted) Cisco VoIP services to corporate, government and military customers in the United States and internationally. Organizations capture all the new advantages of Cisco VoIP technology without the complexity or expense of managing these systems internally. Founded in 1999, the company is headquartered in Northern Virginia. For more information, please visit http://www.pingtone.com