By Nick Heath, 11 July 2008 11:19
NEWS
A government pledge to outsource more IT contracts ignores a history of blown budgets and missed deadlines, unions claim.
Secretary of State for Business John Hutton promised a "long-term commitment to open up public service markets" that will make it easier for the private sector to win IT contracts.
The pledge comes on the back of the Review of Public Services Industry by economist Dr DeAnne Julius.
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The review found that outsourced public services' contribution to the UK economy has grown 130 per cent since 1995, to £79bn, and that the UK leads the way in the public sector IT services market.
The review quotes estimates that £12.4bn is spent on IT by the public sector and that the IT-heavy business process outsourcing market will grow to £7.5bn by 2012.
But the Public and Commercial Services Union (PCS) claims the private sector commitment ignores a catalogue of troubled partnerships in the past.
A spokesman for the PCS told silicon.com: "Our concerns about the private sector's ability to run government IT contracts mirrors our wider concerns, in that what is best for the public all too easily becomes subservient to what is best for business.
"Furthermore, the private sector has shown its inability to run these services effectively and efficiently."
Hutton said in a statement: "It is clear that private and third sector organisations play a valuable part in delivering modern public services and our substantial investment over the past 10 years has paid off.
"This is now a thriving sector that employs over one million people and makes a major contribution to the UK economy. We will now come forward with measures to support the future development of this sector.
"What matters to the public is not who provides but how well a service is provided."
Nick Kalisperas, director for delivery at IT industry trade body Intellect, said: "From out perspective this is good news but ultimately the key to getting the best out of the private sector comes from engaging with them at the earlier opportunity."
The government has also pledged to make the public sector bidding process fairer and simpler and promote public sector contracts at home and abroad.
Comments
There are 3 comments. Join the discussion
1. Karen Challinor
if the UK government were a business that had to make a profit and made IT decisions as they have done while running the country then they would have gone under by now
much as the country is about to do with the forthcoming recession
the only problem is, we're going down with them
2. misceng
The fundamental failure of government projects is not necessarily that private companies are chosen to implement them. Most major projects have always been executed by private firms. The difference over the last twenty years is that the government has insisted on reducing the number Civil Servants. This reduction has been heavily biased to get rid of those with professional expertise in any field including IT.
The result is that the project is specified, contracts bids assessed and the contract management run all by Civil Service administrators with no knowledge of what is involved in the work. The professionals who would be, but for the cuts, in the Civil Service running these contract using their expertise are now in the companies make money out of the failed projects.
3. Charles Smith
"easier for the private sector to win IT contracts..."
If only that was true for smaller UK companies it would be great. Sadly experience has taught us to believe nothing announced by this government. I notice no figures seem to have been announced showing the spending on imported services (offshoring) either directly or indirectly through outsourcing.
As we all know imported services a a drain on this country's finances and also represent a loss of technology skills.