Attention has been focused on critical shortages of information technology professionals. These shortages have begun to affect the ability of state and local governments to perform core operations, meet new agency program needs and support the development of new enterprise-wide capacities. The shortages are not expected to disappear any time soon. Absent proactive measures, government agencies can expect to experience more severe effects as the information technology (IT) workplace reaches retirement age. (The current average age of IT professionals in state service is estimated at 47 years.) Given these dynamics, organizations are currently relying on one or more of three strategies to overcome shortages: (1) outsourcing; (2) use of contracted services; and (3) enhanced attempts at staff recruitment and retention. Each one of these strategies involves cost and risks. Without an overall plan for management and a strategic investment of IT resources tied to a plan for the effective use of information to support new business and enterprise-wide needs, responses to the staffing shortage are likely to be disjointed, ineffective and sub-optimal. Success in achieving the goal of adequately transforming the state and local government workforce in the face of a developing information economy could very well mark the success or failure of government's overall transition to a more efficient, effective and citizen-friendly enterprise. (Author/AEF)