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IT Procurement

It is now generally agreed that PFI is not an appropriate form of contracting for IT procurement. This is largely because of the relatively short lifespan of information technology and the complexity of the business process re-engineering often associated with new IT systems. This lack of certainty means that risk-sharing arrangements are often more appropriate.

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List of Resources:
 
HM Revenue and Customs: ASPIRE— the Re–Competition of Outsourced IT Services (PDF)
House of Commons Public Accounts Committee, 2007
The Stationery Office
The committee draws out the wider lessons for the public sector in re-competing contracts, especially in relation to transition costs.
HC 179 2006-7
UK
 

Developing the Local Government Services Market: Working Paper on Techonology and Transformation Services (PDF)
Department for Communities and Local Government and Pricewaterhouse Coopers LLP, 2007
The Stationery Office
A report which looks at how local government can exploit specialist techniques developed in the private sector to improve service delivery and how the use of shared services could both promote efficiency targets and provide a more customer-centric services. 
UK
 

HM Revenue & Customs: ASPIRE - The Re-Competition of Outsourced IT Services (PDF)
National Audit Office (NAO), 2006
The Stationery Office
A report on the strategic partnering contract concluded by HM Inland Revenue (now transferred to HM Revenue and Customs) to consolidate two previous contracts for IT services.  Better competition was secured by re-imbursing bidding and transaction costs but failure to negotiate transition costs during procurement may have led to overspending. 
HC 938 Session 2005-2006
UK
 

Department of Health: The National Programme for IT in the NHS (PDF)
National Audit Office (NAO), 2006
The Stationery Office
A report on the progress to date in delivering the £12bn NHS IT programme which, at the time of publishing, is wider and more extensive in scope, vision and complexity than any ongoing or planned helathcare IT programme in the world.  It is accepted that implementation and value for money benefits can only be fully assessed at a later date  Part three focuses on procuring and delivering the systems.
HC 1173 Session 2005-2006
UK
 

Continuous Performance Improvement: a case study of ICT in UK local government (PDF)
Worrall, Les; Greenwood, Martin and Madgwick, Terry, 2005
University of Wolverhampton
In the light of performance management initiatives from central government putting intelligent use of ICT at the centre of the delivery of local services, research was undertaken in almost 200 local authorities using 'gap analysis' to understand the priorities for ICT improvement.  
ISSN 1464-1747
United Kingdom
 

Getting more from Less: Can ICT Make Public Sector Workplaces More Productive? (PDF)
Institute for Public Policy Research (IPPR), 2005
Summary of themes raised in IPPR seminar on how ICT can help improve the delivery of public services including discussion of the impact of the Gershon review, comparison with Scandinavian countries and the difficulties involved in using ICT to solve productivity issues. 
UK
 

Improving IT Procurement: The Impact of the Office of Government Commerce’s Initiatives on Departments and Suppliers in the Delivery of Major IT-Enabled Projects (PDF)
National Audit Office (NAO), 2004
The Stationery Office
A value for money examination of OGC's work in helping central government departments improve IT procurement based on the use of Gateway reviews, other tools and guidance such as the Successful Delivery Toolkit and an assessment of its impact on 5 major "mission-critical" IT projects.     
HC 877 Session 2003-2004
UK
 

Effective Partnering: An Overview for Customers and Suppliers (PDF)
Office of Government Commerce (OGC), 2003
Guidance commissioned by the Senior IT Forum summarising the key issues around planning and creating a partnering relationship with an IT service provider.  It covers the factors in creating a strong working relationship built on mutual benefit which are characterised by openness, communication, mutual trust and information sharing in contrast to the traditional 'arms length' procurement and contract management approaches.
UK
 

Management of An IT Outsourcing Contract: Department of Veterans' Affairs (PDF)
Australian National Audit Office, 2002
Assessment of an outsourced IT contract extended to provide all computer infrastructure with the aim of ensuring reliable and appropriate networks and services to meet the department's business needs.  The DVA was also joined by two other Commonwealth agencies to achieve economies of scale.  The audit identified some strategic and operational issues that could lead to improvement in contract management. 
Audit Report No.46, 2001-2
Australia
 

Outsourcing Information Technology in the NSW Public Sector (PDF)
Auditor General, New South Wales, 2002
A review of the way in which five state government agencies individually outsourced IT functions suchs as payroll, HR management and management information.  Although the costs of IT outsourcing for the agencies mainly decreased, there was no evidence that the actual costs matched expected costs or that there was any negotitation of pricing structurues to achieve the decrease.  In addition, none of the agencies had developed performance measures to show whether outsourcing improved efficiency. There is also discussion of whether a centralised or "whole of government" procurement approach would have been of benefit.
Performance Audit No.103
Australia
 

Review of Whole of Government Information Technology Outsourcing Initiative (Parts 1 and 2)
Humphry, Richard, 2000
An independent review commissioned by the Australian government  on the progress of its $4bn Whole of Government Information Technology and Outsourcing Initiative with a focus on implementation risks.  The initiative was begun in 1997 following a decision to outsource IT infrastructure by aggregating services within and across budget-funded agencies.
ISBN 0 642 74056 9
Australia
 

Review of Whole of Government Information Technology Outsourcing Initiative (Appendices 1-7)
Humphry, Richard , 2000
(see above)
Australia
 

Review of Whole of Government Information Technology Outsourcing Initiative (Appendices 8-11)
Humphry, Richard , 2000
(see above)
Australia
 

The Impact of Compulsory Tendering on IT in Local Government: Some Possible Outcomes (Word)
Bryson, Colin, 1996
Department of Human Resources, Nottingham Business School
Unpublished working paper which explores the attitudes of local authorities to Compulsory Competitive Tendering of IT services.  Evidence of IT outsourcing in other areas is used to develop the conclusion that CCT is not likely to deliver improved IT services in local government.
UK
 

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  Last Updated: 17 October 2008