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Public sector contracts '40% above market value'
The public sector could save itself around £6 billion on its IT services, it is claimed, which could prove bad news for IT contractors' job prospects.
Research from Compass Management Consulting (CMC), which involved analysing government IT contracts over the last five years, finds that the public sector is paying around 40 per cent above the market value for IT services.
CMC therefore claims savings could be made simply by renegotiating these contracts - without affecting frontline services.
"This poor performance reflects a combination of questionable procurement practices and inadequate management of the demands that public sector clients make on the service provider for extra services and customisation, which drive up costs." said Gary Bettis, UK president for CMC.
In the first round of announcements regarding public spending cuts, the new government announced that £95 million would be cut from public sector IT immediately, with the strong possibility that more cuts would come in the future.
Research from Compass Management Consulting (CMC), which involved analysing government IT contracts over the last five years, finds that the public sector is paying around 40 per cent above the market value for IT services.
CMC therefore claims savings could be made simply by renegotiating these contracts - without affecting frontline services.
"This poor performance reflects a combination of questionable procurement practices and inadequate management of the demands that public sector clients make on the service provider for extra services and customisation, which drive up costs." said Gary Bettis, UK president for CMC.
In the first round of announcements regarding public spending cuts, the new government announced that £95 million would be cut from public sector IT immediately, with the strong possibility that more cuts would come in the future.
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