Public sector IT management company Socitm has found that while managers of public sector IT departments have succeeded with smaller budgets, they will have to streamline, or possibly even decrease, their budgets in order to survive the fresh round of cuts.

The group was speaking following the publication of research data that looked at IT spending in local authorities. It showed a “worrying” decline in IT spending across the board. There has been a drop of 16% in the past two years. However, the research also found that these spending cuts have not had any adverse effects on staff morale within IT departments.

Socitm Insight manager, Martin Greenwood, commented: “Of course, political pressures dictate that ICT must take its share of the current budget cuts but we advise the ICT function to focus its savings on its ‘business as usual’ capability, and to maintain or strengthen its capability to tackle transformational projects.”

Socitm continued: “Blaming ICT when a service fails to get the benefits it promised from a project saps the credibility of the ICT function, militates against investment in new ICT-enabled transformational projects, and limits the organisation’s ability to deliver savings without cutting front line services.”

The Socitm concluded: “Suppliers able to see the value of existing contracts will be better able to provide competitive bids for new business, while the exposure might embarrass some incumbent providers.”

Recommended Posts

Leave a Comment