Shared services and outsourcing will be at the heart of a drive to cut 7.2 billion pounds (US$10.5 billion) from the U.K. government's annual IT and back office costs.
The savings drive was announced as part of the government's wider Operational Efficiency Program report, published Wednesday, that sets out scope for the public sector to save 15 billion pounds (US$21.85 bllion) each year across a range of areas.
Part of the review tackling IT, authored by ex-Logica CEO Martin Read, said the key to delivering these savings will be sharing and standardizing the back office and IT systems used across central and local government.
The 7.2 billion pounds (US$10.5 billion) savings will come from 34 billion pounds (US$49.5 billion) that the public sector spends on both IT and back office processes each year and should be delivered within the next three years, according to the report.
"Public sector organizations with more than 1,000 employees should conduct a systematic review of their functions, systems and processes to drive simplification and standardization. Reviews should be carried out by the end of 2010 to 11," the report said.
"This should lead to significantly greater sharing of services and potentially increased outsourcing."
Public sector IT systems are highly fragmented, comprising many different types of hardware and software, with money being wasted on different departments running separate systems performing the same job, according to the report.
Shared back office service centers would consolidate and reduce the number of separate systems and processes currently used by government departments, councils, health trusts and police, it added.
The review highlights savings of 20 to 30 percent on like-for-like services gained through the NHS Shared Business Services Center, the joint venture between the Department of Health and Steria that provides back office services to more than 100 trusts, the report said.
As well as backing increased use of outsourcing and shared services, the report recommends much tighter governance of IT projects, with ministers given regular updates on high risk projects, addressing recent concerns from government insiders that failings in public sector IT were often kept secret until it was too late to put them right.
It added that government CIOs and the Office of Government Commerce Category Boards should also be given powers to ensure that common IT infrastructures are purchased across the public sector, rather than it being left up to individual government departments to purchase separate systems.
Sureyya Cansoy, head of public sector programmes for U.K. IT trade association Intellect which was consulted for the review, said savings gained from the review should be reinvested in IT projects to transform public services.
"It should not be assumed that the annual spend on IT could just be reduced from 16 billion pounds (US$32.3 billion) to 12 billion pounds (US$17.5 billion). The government should recognize that IT can be used to transform public services and further cut costs elsewhere," she said.
Nick Heath of Silicon.com reported from London.
Play video
There are currently no comments for this post.