CBI: Public sector has become “more risk-averse” to ICT

The Confederation of British Industry (CBI) has claimed there are "worrying signs" commissioners in the public sector have become "more risk-averse" to the use of IT, and that "IT should be seen as part of the solution, not the problem".

In a report into the use of IT across the public sector, 'System Reset: Transforming public services through IT', the CBI said at a time when the Government faces "a huge challenge" with the budget deficit, "technology can provide many of the answers for how we can do more with less".

The report warned while technology is seen as critical in the private sector for giving a competitive edge to organisations through improved efficiency levels, "This is rarely the case in the public sector."

"Too often IT is seen as just a support service - a cost centre that is expensive, requires big upfront capital expenditure, is risky, fails easily and takes years to deliver savings," the report claimed. "The implication is that in the current climate there is no appetite for innovation in public services - that it is all too risky. This would be a backwards step."

But while the report said risks are exaggerated, "some concerns are justified," and diplomatically citied the number of high-profile IT projects in the public sector which have "run into difficulties". However, the CBI said many of these were down to a failure of learning from past mistakes.

The report also claimed that the contract renegotiations between Francis Maude and IT providers had led to "significant savings" for the Government. "Prices, margins and profits will be reduced sharply over the next four years as the memoranda of understanding (MoUs) agreed are implemented and the government's IT strategy comes into play," it said. However, the CBI described it as critical that lessons are learnt.

The report outlined ten solutions to what it claimed are the "current challenges" in the use of IT by UK public services, if the full potential of IT is to be fully realised in the public sector:

1. Contract for outcomes and value, don't over-prescribe: Customers should specify the outcome, leaving the supplier to determine the best means - bespoke solutions should not be the default option. A 'good enough' IT solution may be better value for money than a 'gold-plated' one.

2. Agree at the outset what should be measured - and measure it: Clients and suppliers need to set the baseline for assessment and should assess the total cost rather than the initial project outlay. Success needs to be observable and measurable.

3. Manage IT systems effectively in order to yield benefits: Once systems have been rolled out, they still need active management. Too often, mistakes occur when the project team is dispersed after delivery. It is then that the new system runs the risk of not performing against its targets.

4. Standardise systems and data models: There is too much IT variation across public services which is not based on strategic requirements. A 'do it once' approach should be adopted. Common standards also allow large contracts to be broken into modular components. 

5. Let staff lead the design and implementation of IT change: Technology can be under-utilised when it does not have staff buy-in. Lasting change is largely achieved by focusing 70% on human behaviour, 20% on processes and 10% on systems. There need to be consequences for staff who will not use new systems.

6. Start discussions now about investing in future technologies: Providers can help the government find solutions and have already proposed many ideas for how they can be delivered and the benefits they will bring. Government now needs to commission those which can deliver its outcomes. 

7. Allow good service outcomes to trump compliance with prescriptive rules: The government should review procurement processes that have become more important than the right solution or outcome. Its 'moratorium' on large projects may be having undesired effects of stifling investment and development of innovative technologies.

8. Ensure changes of policy take account of the consequences for IT systems: Ministers can change fairly frequently and departmental reorganisations often occur as part of cabinet reshuffles. The knock-on effects on technology programmes - the extra cost and disruption - can be huge and long-lasting. More consideration should be given to isolating IT projects from political and organisational change. 

9. Challenge services to drive innovation and save costs: The new Cabinet Office IT 'skunk works' should champion channel shift across public services, define common processes, identify and spread best practice, and draw up delivery plans for sharing front- and back-office services.

10. Don't let security paranoia hinder effective working: When systems hinder staff from working - especially remotely or at home - it can sometimes cause people to circumvent protocols which leads to larger security breaches. Justifiable concerns to protect public service information should not lead to excessive risk aversion and override service benefits from technology.