back to article MPs slam government's 'obscene' IT spend

An all-party committee of MPs has found that successive governments' over-reliance on big IT companies and poor in-house skills, has led to a "perverse situation" in which governments have wasted "obscene" amounts of public money. In its report titled Government and IT – a recipe for rip-offs: time for a new approach, the …

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  1. Anonymous Coward
    Anonymous Coward

    most of the 'support' is not needed

    The vast majority of government workers are filling in a small set of forms every day. They don't need a locked down pc with encrypted drives, backup, complicated disposal, etc.

    What they need is a decent secure (intranet not public) web app to log into and a cheap pc running a basic, maybe even the default image. If it gets screwed up it simply gets reimaged, support costs are much lower. Thats exactly what the banks do.

  2. Bluenose
    FAIL

    Oh look there's a number lets focus on that

    Sometimes people make me laugh.

    Forget the cost of the PC and look at some of the other statements here for exaple "some sources" and "doesn't collect the information" and "an SME". Excuse me but I think I really need to get the facts which this article seems and therefore one assumes the report, seem very short on. We can all make allegations and comments but without facts we can't actually deal with things.

    So for example I bet the cost of PCs for MOD and particularly MI5 and MI6 aren't cheap. I bet the FCO also has quite expensive PC requirements and I am sure there are others. Either way that covers off the average price in "some" departments.

    Day rates for consultants are massively over priced compared to an IT consultant from an agency. Of course that one man band will stand up to the costs of getting it wrong assuming he has Professional Indemnity insurance of greater than £1 million.

    I have seen all this before from Govt and civil servants who seem not to understand a)how businesses work and b)why it is better from a risk perspective to choose a large supplier than a niche market player (a) = to make money and not like the civil service to consume it and b)'cos the big company has deeper pockets when it all goes wrong).

    The reality is that big companies and govt don't get on well because most of the time they don't recognise each others strengths. I have seen to many projects where the govt dept throws a project out and expects the supplier to perform magic to fix all the problems that come with the deal at no cost. At the same time I have seen plenty of contracts where the customer outsources the work and then retains the bulk of the staff who used to do it, to keep doing the work because they don't trust the supplier. Farcical

    But if no one wants to actually collect facts and data and understand the inter-realtionships around the why things happen or are done then the likelihood is that will continue to see big IT spend and lots of failing projects.

  3. James 81

    Everybody at the Reg too busy to do any research?

    A couple of minutes found the claim in the report that 'Other figures have shown that the Cabinet Office spent an average of £3,664 per desktop computer for each full-time employee'. (Para 3.16 for anyone who's looking.) The footnote sources the claim to PC Pro, who in turn source it to the Cabinet Office's Business Plan for 2011-25. This, in turn, makes it clear that it is a total of every third party cost to do with ICT - desktops, laptops, workstations, servers, network infrastructure. other back end infrastructure, comms, a/c, standard software, LOB applications, third party support, consultancy, everything - across 1667 FTE employees.

    The only thing it doesn't include is the internal staff IT costs, which is slightly odd. However, the Cabinet Office's organisation chart shows that their internal IT team, in the Corporate Services Group, contains 6.8 FTE employees, including the Deputy Director (ICT Service Delivery). The average staff cost in the Cabinet Office is £63,693, so assuming the IT team cost the average, they total out at £433,112, which averaged out over the total of 1667 staff, works out to another £259.80 costs per desktop computer, meaning that the total cost of ICT per year in the Cabinet Office works out to £3923.81 or thereabouts per desktop computer.

    This seems on the high side, but given that Gartner found in 2008 that the average TCO for a moderately well managed desktop was $4,650 per year and that for a moderately well managed laptop was $7,643 per year, I don't think it's hugely out of the ordinary. It seems fairly safe to assume that the spend on securing the data and network, as well as on such trivia as disaster planning, accessibility and compliance with standards, are and should be higher in the Cabinet Office than most commercial organisations. There is probably 10% or so that could be cut; there is in most organisations. There may even be 20-30% if they get an absolutely brilliant manager in and he recruits some great staff and suppliers. Unfortunately, brilliance isn't that common, and I doubt Civil Service salaries and working environments are likely to attract the most technically and managerially brilliant candidates out there. As such, accepting that the network will be run with somewhat above moderate competence at roughly normal costs doesn't seem too unreasonable...

  4. Ken Hagan Gold badge

    Economics 101

    Free markets are only efficient when both buyer and seller are knowledgeable about the market.

    The other side are using every trick in the book to maximise their returns, so unless the civil service retains *some* in-house IT specialists and gives them real power during the planning and tendering stages, the taxpayer is going to lose out. Similar arguments could, of course, be made for the need to retain legal and even sales or marketing expertise within the civil service. You need to recognise the dirty tricks and weasel wording.

    There's also an implicit assumption that both buyer and seller *want* the best value. Perhaps *senior* civil servants should feel a bit more heat when a few billion goes down the plughole.

  5. Anonymous Coward
    Anonymous Coward

    Total Waste

    Hi all, I work for an outsource company providing services to the UK Gov.

    I know that over a 3 year lifespan we charge about £2000 per PC provided. that is for full support, all software licences and CAL's, hardware costs etc etc.

    I also know of another Company in the same sector that is rolling out over 150,000 PC's to the gov that charges almost twice that cost per PC.

  6. Anonymous Coward
    FAIL

    Abandon hope all ye that enter...

    There is no hope of improvement in this sector until the government makes it easier to employ people from outside more frequently rather than the SC merry-go-round they have today.

    I have worked in and around the "big names" in IT for nearly 20 years. Last year I worked as the lead architect for a data centre refresh. My team (Me, 4 SME's and 8 engineers) virtualised over 500 servers and migrated to two new data centres in 10 months start to finish. (God bless the private sector)

    My current gig is government based, with half the scope of my last role, but I have been on the job since April and we still have not achieved a single thing. Although somehow the project has accumulated several TB of protectedly marked documents relating to want they want to do, if they make up their mind...

    The team involved on this project is now over 300 strong, and no one is at all bothered that nothing is moving.

    The government customer is dishing out a lot of pain for the supplier at the moment. (A bunch of petulant children pushing for their own way, springs best to my mind.) but they just don't understand that their behaviour will bite them back. You can't show them the errors of their ways. They just can't comprehend it...

    So the contract is set to recoup the losses made in the bid and transition stages...

    One day in the near future, all of the clients servers will be sat in the suppliers data centre's. All the staff that ran the service will be gone (dispersed into shared service elsewhere). Every change will cost 8 times what the the last one cost, and the termination clauses will make a bean counter weep. All because the government went in with their big balls out, set on beating up the supplier to get everything for free in the name of value for money...

  7. Nuke
    Flame

    Missing Fifth Recommendation

    How about a fifth recommendation - to use buyers who have a clue about what they are buying.

    My experience in a large comapany is that the knowledgable people are all pre-occupied with the main business (heavy engineering) while things like finance and purchasing are left to clerical-type middle aged women.

    I remember when an average PC cost about £1000. A company note came round from Purchasing Dept that all future PCs were to be obtained though them "because they had negotiated a contract with [major PC company] to hold their prices for the next 5 years".

    The idiots were really proud of this. The rest of us read it with dismay as everyone knew that PC prices were falling like a lead balloon at the time.

    1. Corinne
      FAIL

      Sexism or what?

      " while things like finance and purchasing are left to clerical-type middle aged women."

      That's odd - virtually all the finance & purchasing bods I know are clerical type middle aged MEN. However some of the best PMs and techies are female.

  8. Jaymax
    Megaphone

    When I was an independant contractor at the Rural Payments Agency:

    I bemoaned load and often that Accenture had basically fitted little more than a faucet into the government coffers to be turned on and off at will.

    Unsurprisingly, I wasn't overly popular with senior RPA management - they did keep renewing my contract though, I assume because I (like most of the other independent IT contractors) was actually delivering value.

    I have to add that there were a small number of Accenture staff who managed to both give a damn and be competent - but this was utterly not representative.

    I will never forget being told by a senior RPA manager that I had to realise that the 'solution' was only one part of the 'contract'; and the 'contract' was the authoritative bit. That's how incompetent they were - this civil servant manager - who kept getting promoted - could not comprehend that her precious contract ONLY existed to facilitate the implementation of a functioning, workable solution.

    I can kind of excuse the incompetence of RPA's management - to an extent - it wasn't malicious, just tragic (AFAIK - one Accenture guy once told me [+ one other independant consultant] he was very uncomfortable with something he had learnt about the way the programme was being controlled at the Accenture end, but wouldn't be specific).

    But Accenture could not have not known what they were doing - it often seemed they were determined to put in systems and components that seemed virtually designed to guarantee future complex change requests, when it would take LESS time and LESS development to support the necessary options from the start.

    As final proof - I offer that they resisted, HARD, ever utilising or delivering a data dictionary of any sort, for a long long time - and when they finally did, it was a useless, incomplete, retrospective document - that they charged a fortune for.

    Sad :-(

    The above are solely my opinions and impressions, informed from being engaged by the RPA for several years of mind numbing frustration. I used to think that if the chance ever appeared to see Accenture dragged into court and sued by HM Govt for what they did, I'd document as much as I could to help see them pay for what they did. These days, I can barely be arsed writing these posts every once in a while when the topic cycles through the news again.

    Oh, and please, there are a lot of hard-working civil-servants at the RPA, who don't deserved to be knocked as being 'jobsworthies' or the like - they are just powerless against the culture.

  9. Charybdis
    IT Angle

    With Gov IT policies, they're lucky it _only_ costs £3,500

    Depends on if we're just talking about Hardware, or adding software, service and network charges. At which point £3,500 is a bargain for what Gov agencies expect.

    - Standard Hardware costs (minimal costs)

    - Licensing for basic software (minimal costs)

    - Licensing and customisation for weird and wacky gov software (obscene costs)

    - Permanent right to call Gov IT Service desk for ranting and support (moderate costs)

    - Lease arrangement to perform hot-swaps at any stage (minimal)

    - SOE/IMAGE overheads requirements because agencies all want different hardware to run all their software packages (moderate costs)

    - Data connection costs (permanent 100/1GB data connections aren't cheap)

    - etc etc

    it's not a cheap exercise, but it's all pretty logical. Just depends on what this report is actually saying about capital costs vs ongoing/running costs..... sounds a bit vague to me...

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