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Government cost cutting is a mistake, say suppliers

Simon Quicke

The growing pressure on the government to use IT more efficiently has been added to with calls from the trade association Intellect to widen the focus from just cutting costs to start improving the use of technology.

Yesterday the ex-head of Logica, Martin Read, produced a report that detailed how the government could be saving £7bn a year through better procurement and use of its IT estate.

Intellect has warned that just focusing on cutting costs would not help improve efficiencies of existing kit and help deliver improvements to public services.

"The technology industry exists to enable its customers do a better job, be more efficient and save them money - this goes for the public sector too. But, simply cutting the ICT budgets would not be the answer," said John Higgins, director general of Intellect.

The pressure on the government to look at its use of IT has increased in the last few weeks as the budget has drawn nearer and the demand to produce some public sector savings has grown in importance.

This story originally appeared on Microscope.


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