Socitm: 1,000 local authority ICT jobs axed last year

By Nicola Brittain

20 Jan 2011

Comments: 2

People working at Hackney Council

Public sector IT body Socitm has estimated that around 1,000 local authority ICT jobs were cut last year.

Speaking at an event today to launch Socitm's IT Trends in Local Public Services 2010/11 report, editor John Serle said the reduction in staff could be attributed to the growth of shared services and outsourcing.

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Some 10 per cent of local councils are actively sharing services and the rest are "thinking about it", according to Serle.

There has also been a significant increase in outsourcing. Roger Marshall, the City of London IT chief, said: "We actually see more activity in this area than shared services because the politics of the latter can get in the way. For example, where should a shared datacentre be housed? All parties will want it located nearest themselves."

Searle and Marshall were both fairly sanguine about the job losses.

"There are currently 29,000 people working in an ICT capacity in local government; we have always considered this to be too many," Marshall said.

David Hopkins, an elected member of Milton Keynes Council, argued that the G-Cloud initiative, which was a hot topic last year, looks to have been kicked into the long grass. However, he said that the development of the Public Sector Network (PSN), which would see a WAN shared by local service providers and bodies from the third sector, was alive and well.

"The PSN will deliver what could be described as a Milton Keynes cloud or similar local clouds, but there will not be a central cloud," he said.

Other trends cited in the report include moves towards self service, although this requires surmounting "an initial investment hump", according to Serle.

Similarly, the move towards virtualisation is increasing apace, although green IT is considered less important than it was a few years ago.

The authors of the report were generally positive about the direction of IT, with Serle arguing that during the economic challenges of 2008/09, IT showed that it was able to "do more with less".

The report found that uptake of new technologies is being driven by rising costs in areas such as stationery, travel and salaries.

It also noted that there has been a move towards increased accountability and transparency within government, and argued that the coalition's Big Society agenda could push uptake of the PSN.

One potential area of weakness within local authority IT is that of security, according to Serle, with the cost of dealing with data breaches increasing and compliance with standards cited as a big financial burden.

 

 

 

Reader comments

Bloated public sector

Under new Labour, the public sector grew at an unprecedented rate in an attempt to build a client state that would keep the party in power indefinitely. Game's up, I'm afraid, and all these costly extra officials will now have to find productive roles elsewhere as the country cannot afford them

Posted by: PJ  02 Feb 2011

Outsourcing does not necessarily mean job cuts

Indeed, the public sector has seen “a significant increase in outsourcing”, and many automatically attribute recent job losses with this trend (‘Socitm: 1,000 local authority ICT jobs axed last year’, computing.co.uk, 20th January 2011). A less black and white picture should also be put forward here, however, which considers why outsourcing is an effective option.

The fundamental point missing is that budgetary constraints are causing job losses, and outsourcing simply offers a means to do more with less. The article also fails to take into account the transfer of employees under TUPE (Transfer of Undertakings (Protection of Employment) Regulations 2006), an agreement which binds outsourcers to minimise the needless loss of jobs.

Increased uptake of outsourcing agreements is undoubtedly due to the recognition by these public sector organisations that IT is not a primary function or area of expertise. Applied effectively, IT can be a tool which supports business processes and frontline service provision, helping organisations do more with less.

Outsourcing does not, however, simply eliminate jobs in the public sector. Undoubtedly, there have been some job losses in the public sector - as with all sectors – but this article does not take into account the practice of TUPE arrangements, where a number of staff may be transferred over to the private sector outsourcing company.

Importantly, these arrangements are mutually beneficial. The transferred employees have experience of the public sector organisation and its systems, while also enjoying the opportunity to work for an IT-focused company. This is indeed a big transition, but one which is widely regarded as positive, and is by no means as simple as the job losses implied in this article.

Joanna Sedley-Burke
Business Development Director
Sovereign Business Integration
www.sovereign-plc.co.uk

Posted by: Joanna Sedley-Burke  27 Jan 2011

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