Looking to tap into the perspective of a successful managed IT service provider focused on cloud, cybersecurity and infrastructure, experienced across the federal SLED and commercial spaces, we caught up with vTech Solution CEO Haresh Vataliya to learn more about the opportunity to diversify across State and Local government, the challenges, and key differences between the markets.
A Lens of Modernization
Building on extensive experience helping State and local government with modernization efforts, Haresh says there has been a noted change in approach and scale in these segments. “Instead of working on an individual effort that will only impact one office or one branch, there is now a need for an ecosystem where other departments or offices can tie in. There is an understanding that these levels of government must operate more like the federal government and be open to scaling, be open to greater integration.”
There also seems to be, among State governments, a greater openness to seeing and learning from what others are doing. “They are often able to operate on what might be compared to shared services at the Federal level so they can take another’s basic product and add in some small tweaks perhaps to get to where they need to be.”
Leveraging experience supporting the Federal government with such challenges, or that supporting multiple agencies across multiple States, and bringing perspective on what worked for another, there is an opportunity at hand to help these agencies move past hurdles and roadblocks that might otherwise impede them.
Similarities across States
While different States may be governed by different entities and different parties, their structures and pain points very closely mirror each other so if you understand one, you can quickly learn another. “Treasury and offices of finance operate similarly. Humans are humans no matter where they are. Where you specialize in a specific area and are able to succeed supporting one State with that challenge, you can apply those same basic principles to solving another State’s challenges.”
Haresh says infrastructure and policy such as cybersecurity frameworks may be built upon federal models but may vary slightly depending on the use cases and demands of the state. With these, industry must be able to both demonstrate past performance but also communicate and ability to adapt, scale and be flexible.
Federal vs State
As with Federal work, at the State level there is a need to understand the priorities of the government in power, to understand their mandate around cost, efficiency, technology adoption. The difference with State is that it can be much easier to connect with those in power to speak with those decision makers to better understand their concerns, to present your solution, to have a discussion that may help move the needle forward.
At the State level, those elected representatives are also more closely connected to the people who put them in power so they may act more slowly, may be more thoughtful about what they implement. “They will have different rules about how they move forward but also do so based on conversations they have had, knowing the faces of those their decisions will impact.”
Getting into State Work – How to Choose
There are a lot of considerations around deciding to pursue business in a particular State. Beyond compliance and essential regulations there are considerations that include regulations around awarding a percentage of work to local companies. “You may need a physical presence in a state to have any chance of winning work there. You need to consider where you may have a greater chance of winning work, not because of your capabilities, but because the environment may be more or less favorable. Who the ultimate decision-maker is, who has that signing authority, can differ from state to state so you need to understand that, to understand the process.”
It is also important to consider the talent pool if workers will need to be local. “Will you be able to pay a competitive rate or will you be competing say in Silicon Valley where there is so much competition for talent? Are there good schools in the area which will support a talented pool of candidates?”
“There is a definite focus on money staying within the state so how do you address that, how do you create and maintain a presence, or form a relationship with a company that is in the state so that you can work alongside them?”
Firms considering an eye to State work, with a presence in a particular state, must look to make connections with their local networks, to forge relationships and develop networks within their communities that may lead to future work. “State governments will have work that is similar, needs that are similar, so if you are considering expanding your footprint to include State and local work, starting where you are makes sense.”
The Future of State and Local Work
Just as the Federal government is focusing on things like cybersecurity and AI, so too are governments at more local levels. “There is a need not just for AI to improve workflows, to increase efficiencies, but also a need for those who can guide the use of AI in terms of who should have access, how it should be used, the decision-making that still must fall to the human component.”
There is also skills training, ensuring those interacting, building and continuing development of infrastructure will have the skillsets and the knowledge needed to continue to move forward.
“As the Federal government focuses more on these things, there will be greater demand at the State level as well to ensure the two can interact, that they are on a level playing field with respect to compliance and efficiency.”
Potential Partners
To expand its footprint in the Federal and State and Local markets, vTech Solution is actively seeking strategic partnerships with firms that have deep knowledge and established relationships in target states.
The goal is simple: bring vTech’s proven solutions to new communities.
That means teaming up with companies that know the terrain within agencies or offer services that complement what vTech provides.
By combining vTech’s national expertise with local insight and presence, these partnerships can deliver scalable, secure, and efficient IT solutions tailored to each state’s unique needs.
This isn’t just about expanding the map—it’s about doing it smarter, faster, and with the right people at the table.
