10/1/2010 2:09:18 PM
IT news: Government to cut IT Sector spending
Analysits have warned that the current Whitehall spending cuts
will not bounce back.
Logica has announced it's agreement to cut it's charges for IT
services in 55 government departments and agencies. Talks are
currently taking place between the Cabinet Office and the
government's 19 leading technology suppliers. Logica is the
third partner to agree to cuts, with the government reviewing
whether 419 new IT projects should start.
Analyst House TechMarketView note that the
squeeze was a correction to the governments history of paying
over the odds for its technology in the past. As a result,
spending was unlikely to ever recover to the previous levels.
TechMarketView is
forecasting public sector IT spending, estimated at c.£16bn per
year, to be cut by 10% between 2009 and 2012, with central
government departments cutting their spending by 27% during the
same period.
Logica's UK CEO,
Craig Boundy, said his company had agreed to make 'efficiency
savings' across it's public sector contracts,
and highlighted that some of those savings would be
realised immediately.
Will this have an impact on the quality of service provided?
Boundy said,
"Quality is relevant to individual needs, so no. I
think that is about making sure we deliver to the needs."
Damian Hicklin
IT
& Communications Divisional Manager
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ARM