Leading IT companies react to Government cuts

May 25th, 2010 by Rahul Jain Leave a reply »

Leading IT specialists have called on the Government to look at outsourcing and cloud computing solutions as a way of achieving greater efficiency and savings.

They spoke at the new coalition announced plans to axe BECTA, a quango which promotes the use of technology in schools, saving £65 million.

Mark Dale, Director Public Sector Technology, Transport & Logistics Sales UK & Ireland for global outsourcing company MphasiS, said: ““Headline figures, such as the £65m in saving expected from scrapping BECTA, could easily be matched if IT provision to the public sector was at maximum efficiency – something only possible if outsourcing is embraced.

“Scrapping BECTA, will undoubtedly help to cut costs significantly, but rather than slashing the budget in the education sector, Osborne first needs to address the high-level of inefficiency in Government back-office functions.

“These budget cuts give Government departments a compelling motivation to outsource non-core processes. Many back office activities which until now have been regarded as sacrosanct can actually be commoditised and performed much more efficiently by a specialised provider of BPO services.

“In doing this, it actually enables Government departments to innovate despite budget cuts, as they can focus on their core activities and ensure they are delivering the public with value for money. Government departments could both enjoy a lower cost IT service delivery and also tap into a burgeoning technology skill base abroad. Instead of making do with ‘cheap and cheerful’ solutions at home, they could be providing staff with best of breed IT and other back office functions.

Ferenc Szelenyi, EMEA vice president of public sector services, of IT services provider Dell Services, said:

“The Government should be more concerned with commissioning the right outsourcing services for each sector. Managers in the public sector should turn to IT outsourcing at a time when improving efficiency and cutting costs is imperative. A successful outsourcing strategy provides a medium to long-term solution, which can not only deliver the necessary cost savings to ease the burden of the current deficit, but also provide access to specialist skills and technology. This allows any new or existing government to focus on core (in-house) activities.”

“If you take IT services within Education as a prime example, an outsourcing service provider is better placed than a government body to transfer paper to electronic records, having already made the investment in the required technical equipment, training and skills. These are assets that government departments simply do not posses in house. This could have a great deal on time and money to the Education sector.”

Dave Baldwin, managing director of ICT specialists Getronics UK, said: “With the education sector facing huge cuts, isn’t it time department heads looked to the cloud to help reduce operational overheads? With on-site IT costing departments time and money, schools and universities can secure huge savings through hosted desktop environments, whilst providing a more flexible approach to education.”

Source:http://www.netimperative.com/news/2010/may/right-to-reply-leading-it-companies-react-to

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