UK government to cut back on IT consulting

by Editor 11/28/2008 3:16:00 PM
The UK government will cut back on spending on information technology and computer consultants in an attept to raise £5 billion efficiency savings. Chancellor Alistair Darling voiced confidence that reducing the cost of information technology and IT staff would not seriously affect public services. Over the next three years, he hopes, the state can save £35 billion. Spending cuts will remain a priority to the government until 2012 and beyond.

Whitehall has already made room for £26.5 billion of efficiency savings since 2004, which is five billion over target. In the three years leading up to 2007, the government has also eliminated 86,700 civil service posts.

Peter Clarke, analyst at Ovum, says that, for the state’s IT providers, smaller budgets will demand a confident, considered response to meet the sector’s concerns. “Those software and IT services suppliers that seize the opportunity can act as the catalyst in driving out efficiencies and improving the quality of public services,” he said.

“Now is the time for suppliers to intensify the conversations about efficiency and improvement in public services which they have been having with the public sector over the past three or four years,” Clarke continued.

“The government has become increasingly impatient that the public sector has not moved fast enough to achieve back-office efficiencies or achieved the efficiencies in more radical ways. What we heard… was a chancellor determined to achieve that goal sooner rather than later,” Clarke concluded.

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11/28/2008 4:47:19 PM


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