Revamping government IT poses stumbling block to achieve new pledge on SME contracts

Government to spend £1 out of every £3 with small businesses

The government’s vow to spend £1 out of every £3 with small businesses can only be achieved through a revamping of how IT services are procured in the IT public sector, says Cloud Services Provider Outsourcery.

Decades of choosing single, large-scale providers on extended contracts have led to enormous inefficiency in the public sector and choked out smaller providers. This commitment to SMEs must include a disaggregation of government IT systems, which has the potential to save government agencies millions each year. With the potential for such dramatic savings, this is great news for taxpayers in the UK.

Simone Hume, Head of Public Sector at Outsourcery explained: “Technology is now so pervasive across government that it simply will not be able to achieve these new targets without a focus on IT suppliers. Over time, many government departments and agencies have outsourced their IT services to large organisations. However, this practice has led to lengthy contract lock-ins, business continuity risk in moving away from the chosen supplier, capital investment in outdated infrastructures and an inability to take advantage of new technologies – to name but a few of the problems. This is before mentioning how cost-ineffective this method to IT delivery and management can be.

“The government is moving towards a disaggregated government IT system, which is fantastic news. Government departments will be able to focus more on innovation, agility and value for money, which wouldn’t have been possible before.
Simone Hume, Head of Public Sector at Outsourcery

"A multi-sourced vendor strategy, taking full advantage of more agile SMEs, enables government agencies to quickly switch suppliers to higher-performing, more cost-effective vendors throughout the life of the service. Greater progression at a better price is surely a win-win for the government, SME vendors and the public.”

Outsourcery works closely with the UK Public Sector, offering its services and expertise to improve IT systems. The company’s Co-CEO, Piers Linney, was recently appointed to techUK’s Public Services Board, which seeks to drive improved efficiencies in the public sector through the adoption of new technologies. In addition, the company’s O-Cloud services have been certified to run government classified information at 'Official' and 'Official sensitive' levels over the internet, meeting data sovereignty and security specifications for the sector.

Hume concluded: “Our work within the public sector has put us on the frontline, witnessing government IT systems being encumbered by legacy contracts with large suppliers. We’re pleased with moves to spend more money with SME suppliers. The prospective savings from disaggregated systems will certainly be felt throughout the UK and especially in the pockets of taxpayers.”


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