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Tories plan for £100m cap on government IT contracts

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    Tories plan for £100m cap on government IT contracts

    Interesting concept - we all know the shortcomings of Government IT contracts - what does the panel think of this approach ?


    For example - Dr Thompson's report calls for an "open" system of IT procurement, involving a much wider range of contractors, including innovative start-up companies.


    The Conservatives are considering plans for a £100m cap on government IT contracts to prevent "white elephants" such as the NHS computer system.

    Instead of awarding long-term contracts to large IT companies they could open up the procurement process to smaller firms using "open source" software.

    A report drawn up for Shadow Chancellor George Osborne claims potential savings could reach £600m a year.

    The Tories say Labour has wasted billions on "catastrophic" IT projects.

    The report, by Dr Mark Thompson, of Judge Business School at Cambridge University, is being studied by the shadow chancellor as part of the Conservatives' detailed preparations for government.

    'Modernising government'

    Mr Osborne said: "The Conservative Party is looking to the future. We have led the debate on using open source software in government, and I'm delighted that Dr Mark Thompson has come forward with these detailed recommendations.

    "These proposals aren't just about saving money - they're about modernising government, making the public sector more innovative and improving public services."

    He said he wanted to hear views from the public and the IT industry about the proposals.

    The Conservatives claim the government wasted billions on failed IT projects, including the computerised patient record system for the NHS in England, the cost of which has soared from an initial estimate of £2bn to £12bn, and which has been subject to a series of delays.

    The Committee on Public Accounts earlier threw fresh doubt on the 2015 deadline for the project.

    The government has scaled back some IT projects in recent years. In 2006, it scrapped plans for a single multi-billion pound system for the national identity register, with the information to be held on three existing, separate databases instead.

    But the Conservatives say millions more could be saved by moving away from the current government practice of outsourcing IT projects to a small number of large contractors.

    'Level playing field'

    Dr Thompson's report calls for an "open" system of IT procurement, involving a much wider range of contractors, including innovative start-up companies.

    It recommends the adoption of open data standards across government, in effect creating a common "language" for government IT systems.

    This would reduce licensing costs and free government bodies from long-term monopoly supply contracts, the report says.

    "This means that the UK government should never again need to sign an IT software contract worth over £100m - so no more IT "white elephants," it adds.

    Dr Thompson said his report "shows how government could save hundreds of millions of pounds a year by creating a more open IT procurement process - including levelling the playing field for open source software".

    "It isn't rocket science - it's about creating a modern and efficient procurement system. Governments and companies around the world are making use of open source software, and we could achieve much more here in the UK," he added.

    #2
    Not much of what he said is new, most people involved in implementing NPfIT have questioned why they didn't design a messaging protocol and let Trusts sort out the systems they wanted.

    The £100M cap would work for the majority of projects, but I can see it falling short for some of the bigger infrastructure projects.

    Comment


      #3
      Mr Osborne said: "The Conservative Party is looking to the future. We have led the debate on using open source software in government, and I'm delighted that Dr Mark Thompson has come forward with these detailed recommendations.

      If open source proves to deliver not just cost but improvements with services as emphasised by Dr Thomspon - would this not lead to the Private Sector endorsing Open Source as being the future standard for inhouse systems ?

      If so , this proposal could be more far- reaching in its consequences - certainly it is innovative and leaves Labours current policy looking rather clumsy and and archaic -not to mention wasteful.

      He said he wanted to hear views from the public and the IT industry about the proposals.

      So what will be the CUK readerships - as a significant part of the IT industry -response be ?
      Last edited by AlfredJPruffock; 28 January 2009, 21:52.

      Comment


        #4
        They will probably have to hol £100m consulting sessions to see how to reduce their project budget to £100m!! Useless bunch of monkeys!

        Comment


          #5
          Originally posted by Smurficus View Post
          Not much of what he said is new, most people involved in implementing NPfIT have questioned why they didn't design a messaging protocol and let Trusts sort out the systems they wanted.

          The £100M cap would work for the majority of projects, but I can see it falling short for some of the bigger infrastructure projects.
          Actually the truly large projects can be logically compartmented by a Programme approach with decent strategy to keep individual elements in check and budgets for each Project element. It's standard Programme/Project managing approach that seems to have been neglected somewhat in NPfIT.

          Comment


            #6
            My experience of public sector projects is that the extra costs are due to demands to accommodate shifting requirements that support ridiculous and pointless "business" processes.

            All Open Source would do here is provide a cheaper initial platform for the public sector to prat about with, although that's not a bad thing in itself - the better thing would be to address the institutionalised crapness. I like the other stuff the Tories are saying here.

            Comment


              #7
              Originally posted by AlfredJPruffock View Post
              If open source proves to deliver not just cost but improvements with services as emphasised by Dr Thomspon - would this not lead to the Private Sector endorsing Open Source as being the future standard for inhouse systems ?
              Open source software in itself isn't a "standard", and nor should it's adoption be standard.

              Frankly open source software is already used widely in the public and private sector, sometimes too much. Usually a particular piece of open source software is adopted simply because it requires no procurement sign off, even though sometimes the project would be better off using a paid commercial product.

              The real big savings could come with using Linux on the desktop with OpenOffice instead of Microsoft Windows with Office. However this idea is not much closer to fruition than it was ten years ago, the only glimmer of hope perhaps being 'Netbooks' like the popular Asus eee PC running Linux.
              Cats are evil.

              Comment


                #8
                Oh my, you lot really were born yesterday!

                This is just the Torys saying to the likes of EDS etc. "Give us loads of campaign contributions or you're history."

                £100m cap on projects? Yeah, like that is really going to happen!

                GUFFAW!
                Insanity: repeating the same actions, but expecting different results.
                threadeds website, and here's my blog.

                Comment


                  #9
                  Originally posted by threaded View Post
                  Oh my, you lot really were born yesterday!

                  This is just the Torys saying to the likes of EDS etc. "Give us loads of campaign contributions or you're history."

                  £100m cap on projects? Yeah, like that is really going to happen!

                  GUFFAW!
                  How about a shot accross the bows of MS to persuade them for more funding ?

                  They too could be history if Open Source is promoted nationally in this manner.

                  Personally I dont see the main thrust of the proposal being campaign contributions - though you did make an excellent point..

                  This represents more a show case for Tory politics- effective and sensible Public spending aimed at reducing the overall cost to Britains hard taxed public.

                  Heres a thought - what would be the impact for you as a Contractor in terms of skills and roles if , as a consequence of this policy . open source replaced 'proprietary' (cant think of a more suitable word than Standard here) not only in the Public but in the Private sector as well ?
                  Last edited by AlfredJPruffock; 29 January 2009, 08:10.

                  Comment


                    #10
                    Originally posted by swamp View Post
                    The real big savings could come with using Linux on the desktop with OpenOffice instead of Microsoft Windows with Office. However this idea is not much closer to fruition than it was ten years ago, the only glimmer of hope perhaps being 'Netbooks' like the popular Asus eee PC running Linux.
                    The goverment gets massive savings from Microsoft products due to bulk buying and in any case the average PC in the public sector lasts about 5 years. There would be little savings there.

                    Couple that with the fact there are thousands and thousands of apps already written and working in microsoft specific languages that would have to be rewritten so you would be ditching a proven piece of software running on a proven OS and going back to the software suppliers for rewrites, not a good idea.

                    And think of poor Doris in accounts that has taken 15 years to get used to word, she would freak out if she was asked to use open office which is a poor relative, let's be honest. Some people would take months to get used to the switch.

                    Comment

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