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Councils spending record amount on IT

Rebecca Thomson
Monday 26 January 2009 11:50

Councils will spend a record amount on IT in 2008/9, according to the Society of IT Managers (Socitm), which represents public sector IT staff.

Its annual IT trends report predicts local authorities will spend more than £3.2bn on IT in 2008/09, an increase of 5% on the previous financial year.

But while security, privacy and access to information have leapt up the agenda for councils, the report warned that IT is "too often regarded as a utility rather than a means to transform public services."

Councils could also deliver more radical changes in public services with new technologies, the report said.

Staff salaries are the highest cost for IT departments. The report also pointed out that although councils are spending more than ever before, public sector IT departments still do not have as many resources as commercial departments. The report said, "There is a reluctance to borrow to finance IT schemes, suggesting that the business cases are not compelling."

The report said IT managers are not sufficiently involved at the top levels and are not influencing key aspects of service development. It said, "The trend of the down-grading of the IT function previously detected appears to be continuing."

And while information security is at the top of the agenda for councils, the report still suggests a "fundamental review of security and privacy issues" is needed. "Out-of-date management practices represent a serious threat to organisations," it said.

There are also continued problems with recruitment and retention of IT staff.

Socitm President Richard Steel said, "The demand for IT continues to outstrip supply this remains the big challenge for heads of IT."