Public sector making 'slow progress' on CSR technology cuts

The public sector still has to trim billions of pounds from its overall IT spending over the next three years to meet the demands of the government's Comprehensive Spending Review, according to research commissioned by VMware.

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The public sector still has to trim billions of pounds from its overall IT spending over the next three years to meet the demands of the government's Comprehensive Spending Review, according to research commissioned by VMware.

More than half (54 percent) of public sector organisations having to make cuts in their IT budgets are yet to even begin, found the research. It said £2.6 billion of costs was yet to be cut.

The 102 senior finance bosses responding to the survey said they have implemented less than nine percent - on average - of the planned cuts to IT spending.

Despite the Comprehensive Spending Review aiming to protect front-line services, 61 percent of senior financial officers said that reduced budgets are already impacting front-line services.

More than two thirds of those surveyed (69 percent) believed the cuts will be difficult to achieve within the three year timescale.

The majority of respondents said IT is integral to cost cutting efforts (73 percent). They also believed IT possessed the ability to transform the way in which organisations operate (91 percent), and delivered the organisation value (87 percent).

In addition, 83 percent said IT was essential to delivering of shared services. The survey was carried out by ComRes.

Mark Newton, UK managing director at VMware, said: “The research shows financial decision makers recognise that smart allocation of IT spending and resources can make a fundamental impact on their organisation. Rather than seeing it as a drain on resources, IT has the power to drive positive organisational change.”

Now read: Public sector IT budgets could fall by £3.6bn over three years

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