Achievement of scale economies: Centralized approaches allow most activities to be undertaken more cheaply per unit. Items purchased externally-computers, software packages, consumables, staff training, system development, consulting, and so on-can be decided upon once and then bought in greater bulk.
Activities undertaken internally-from system development to implementation and maintenance, and management of all these processes-cover a greater number of staff.
Avoidance of duplication: One main intention of centralized approaches is to have a single version of any particular e-government system for the whole organization, and to store any item of data once and only once. As a results, there is no wasted effort, no wasted storage capacity, and no inconsistency of data.
Sharing resources: A well-planned centralized system holds data used across the organization in one place, allowing all staff to access it. This makes it cheaper, faster and easier to undertake organization-wide activities. Central planning and operation also allows compatible technology and skills to be introduced. Exchange of Hardware, software and staff between organizational systems and units therefore becomes much easier and less costly.