IT projects key to government efficiency plans

Fifteen per cent of the £21.5bn project annual savings rely on technology programmes

Fifteen per cent of the government’s efficiency plans rely on new technology investment such as the NHS national IT programme, according to the National Audit Office (NAO).

At least £3.2bn of the £21.5bn annual savings to be delivered by 2007/8 are IT-dependent, despite the risks involved with major IT projects, says a report on progress, published last week.

Alongside staff reductions, a significant part of the plan is the adoption of common administration systems, such as human resources and finance, shared by multiple organisations. The NAO report says shared services could ultimately be worth as much as £30bn a year.

But the Gershon Review, which instigated the efficiency agenda, specifically avoided proposals requiring major, new IT systems, because of the risks involved.

‘The public sector has yet to demonstrate that it can consistently deliver successful IT programmes of this magnitude,’ says the NAO report.

‘Nevertheless, at least £3.2bn of the efficiency gains target is dependent on projects needing new or upgraded IT systems.’

The Pre-Budget Report published at the end of last year said the public sector had already delivered £4.7bn in efficiency gains. But the NAO says government departments’ management information systems need improvement to ensure wholly reliable reporting.