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New IT procurement rules welcomed by contractor body
Posted Feb 9, 2009
A new report which highlights a more cost-efficient and fair approach to public IT procurement has been welcomed by the leading contractor representative group.
The Shadow Chancellor, George Osborne, commissioned the report by Dr Mark Thompson (from the Judge Business School at Cambridge University) into how to deliver better value IT procurement and also how to create a more level playing field for open source software applications (see our earlier report here).
The key suggestions from the report included:
- The Government could save at least £600 million per year if it adopted a more effective open IT procurement process.
- New government data standards should be introduced across government, creating a level playing-field for open source software.
- These new standards would enable large-scale IT projects to be split into small modular components, meaning that the UK government should never again need to sign an IT software contract worth over £100 million.
PCG welcomes report
John Brazier, managing director of PCG, said:
"We warmly endorse Dr Thompson's proposals and are pleased by Shadow Chancellor George Osborne's response to them. As the Shadow Chancellor has commented, the Government needs to stop thinking that when it comes to procuring IT systems, big is always beautiful. We would also urge
the Government to take on board Dr Thompson's sensible proposals.
"The procurement system for Government IT projects currently in place is unnecessarily expensive and effectively excludes many potential bidders.
"In particular, we would like to see the issue of minimum capital requirements urgently addressed, so that smaller companies are not disadvantaged."
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