Business Focus is a regular column providing at-a-glance
statistics and commentary on spending priorities and trends in
particular sectors. This week we look at inland
transport.
The government defines inland public transport organisations as
those without sea or air services.
Perhaps surprisingly, inland public transport companies spend
more on IT per desktop than any other companies in this
industry.
Large enterprises in the sector spend well beyond the UK
cross-industry average of £8,455. At £13,204 per desktop, costs
outstrip even the £10,071 spent by their sea and air transport
counterparts.
Big changes in inland public transport requirements underpin
this high level of investment, with the UK's public transport
system continuing to creak under the strain of historical
under-investment.
Although privatisation has improved some services, operational
efficiency remains a major consideration for many inland
transportation companies still running ageing legacy and bespoke IT
systems. And cost is still a big issue for many, though IT renewal
and consolidation strategies are helping to reduce operating
costs.
International public transport company
FirstGroup
is one firm in the sector in the midst of a five-year
transformation project.
FirstGroup chief information officer Darin Brumby said he
expects savings of £5m in the current financial year, following a
platform consolidation programme and other related IT-enabled
projects. In May, the group began the process of consolidating 191
IT systems down to fewer than 40.
The publication of a government-sponsored report by
Rod Eddington on UK transport's role in
sustaining the nation's productivity is also likely to push IT
spending across the board.
Methodology
The analysis is based on Computer Weekly's database of more than
60,000 IT budget holders, twice yearly user IT expenditure surveys,
CBI/Kew senior executive surveys, government surveys, government
demographic data, HM Treasury economic forecasts and Cambridge
Econometrics industry sector forecasts.
Further details
www.kewassociates.co.uk
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