KPMG blueprint for cutting government costs

With the government spending review approaching I thought I would kick off the debate about how departments can operate with smaller budgets.

One thing is for certain. Departments will have less money to spend. IT could be a way of enabling savings across the board within government but it might require some initial spending.

I will start with KPMG’s partner in charge of IT advisory, Bryan Cruickshank, because I have just met him. KPMG provides full business advisory with IT as one part of this.

KPMG will be attempting to have conversations with government about how it can change, says Cruickshank. He also believes that the consultants have to change too.

He says consultancies that have grown fat off public sector work will have to change, and the days of having 50 to 100 consultants onsite at a government department are over. He believes charges will move towards being more benefits driven.

The government has already asked its IT suppliers to cut costs and has clamped down on the use of consultants.

KPMG has public sector clients including the Home Office, MOD, Foreign Office and Department of Health to name some.

BLUEPRINT FOR CUTTING GOVERNMENT COSTS

Cruickshank says it is no different in the public sector to the way the private sector does it.

– He says like any large organisation a government department has to rationalise the products and services it offers to just what it needs to. For example in the public sector there are services that might only be used a couple of times a year.

– Then shared services must be implemented. He says UK government is like a group of subsidiaries but they do not share IT. See more on shared services in government here.

– G-cloud or something like it should be applied. He says the US government is ahead of the UK on this through a deal with Google although “not conceptually but in its execution.” The UK G-cloud is still being piloted. See more about the G-cloud here.

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