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NIC Inc. (EGOV) Helps Governments Connect

Founded in 1992, NIC Inc. is a provider of outsourced e-government portals. Their focus is on building and managing official government websites and e-government services for state and local governments in the U.S. As part of the Internet Software and Services industry, the company trades on NASDAQ and has a current market capitalization of $509.14M.

NIC Inc. collaborates with leaders in various levels of government and establishes local offices so they can provide specialized services for each one. The company’s goal is to use the latest technologies to help governments operate efficiently to reduce their costs, and as a result the costs to their constituents. The company’s main offering is their “self-funded model”. With this model, NIC helps governments build e-government services without accessing taxpayers’ money.

NIC also earns revenue on a fee-based system, which operates differently from the self-funded model. Here, governments pay NIC pre-determined fees on a fixed-time, fixed-cost, or time and materials basis, as per their contract agreement. There is also a hybrid formula for NIC to earn their revenues. With this method, governments pay the company upfront to build the infrastructure and develop their e-government services. Then the two parties share any additional revenues.

Headquartered in Olathe, Kansas, NIC Inc. has 430 employees. They became a publicly traded company on NASDAQ in July of 1999. Twenty-one states currently collaborate with them for their enterprise portal management. NIC also offers payment-processing services for governments, branding and marketing management, and e-government policy and strategy consulting. Some of the services they provide to governments are: drivers’ license renewal processing, web solutions for income tax and property tax filing, and even hunting and fishing license processing, as well as business registration services.

On May 23, 2008, NIC Inc. announced that the State of Hawaii signed a new five-year contract with them to manage their official government website. NIC continues to develop systems and solutions for government clients. They believe their systems help governments serve their citizens better, while at the same time serving NIC’s shareholders with sustained growth.

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