Sharing ICT 'could save the public sector £1bn'

SCOTLAND'S local councils, universities and other public sector bodies could save up to £1 billion over the next five years by clubbing together to buy their computer systems, according to an independent review published yesterday.

John McClelland, a former executive at both IBM and Philips and author of the 2006 review of public procurement in Scotland, recommended that the public sector should share a single information and communications technology (ICT) system.

McClelland, who is acting chairman of Skills Development Scotland and a non-executive director of Rangers football club, called for an over-arching national ICT strategy to address needs north of the Border.

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He added that sharing a computer system for all public sector organisations could also bring about operational savings over-and-above the 1bn figure.

The review found that the public sector in Scotland spent at least 1.4bn on ICT in 2009, 60 per cent of which went to industry. There are about 6,200 people employed in ICT across the public sector. McClelland said: "The public sector should recognise that, in the current economic environment, a largely standalone and 'self-sufficient' operating model is no longer affordable and should commit to an era of sharing in ICT that will not only offer better value but also still meet the needs of individual organisations and their customers."

His review was welcomed by ScotlandIS, a trade body that represents more than 200 ICT companies. Executive director Polly Purvis said research had shown that Scotland could add 5bn a year to its economic performance by using ICT to improve productivity.

She added: "The ICT industry in Scotland stands ready to work in partnership with the public sector to ensure it emerges from the current challenging economic environment as stronger."

But Colin Borland, head of external affairs for the Federation of Small Businesses in Scotland, warned that big ICT must not just be handed to larger players.

Borland said: "We all want integrated Scottish public services integrated Scottish public services and we all understand the strain on the public finances.

"The public sector could have a key role in developing next-generation broadband access in Scotland. Therefore, this report needs to be examined closely.

"However, the rush toward aggregating contracts cannot exclude Scottish businesses from providing innovative goods and services – especially in the field of ICT.

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"Wanting Scotland's public services to use money better doesn't mean just rushing into the arms of large multinationals."

Finance secretary John Swinney welcomed the McClelland review adding: "Along with the Public Procurement Reform Board, I will consider in detail the review's findings, but it is clear there must be more effective engagement with the ICT industry and a clearer focus on breaking down organisational barriers to deliver better public services that focus on users while getting the best value for money.

"During our last administration, we implemented the approach to procurement recommended by John McClelland. I asked Mr McClelland to consider the next stage of the challenge … and I welcome what he has set out."

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