I was at the launch of the annual local government report on IT. The report, which is carried out by Socitm, revealed an 11% drop in IT spending and a 10% reduction in IT staffing levels.
The report's author Peter Searle, like government CIO John Suffolk, said public sector IT will this year have to change how it operates.
He said councils could no longer do more with what they have, never mind with less, and will have to do things differently.
This is where outsourcing comes in.
But which suppliers will succeed and what type of services can be farmed out?