New figures on outsourcing would indicate that best value in IT is often best delivered by hiring in the private sector.The seventh annual ITNET Index has shown that the value of local government IT contracts awarded to suppliers has risen from 35m pounds to 50m as the service has moved from compulsory competitive tender (CCT) to best value.
Central Government is also spending more with outside contractors – with the value rising from just over 1bn in 1999, to 1.2bn in 2000.
The public sector now directs 34% of its total spend on IT to outsourced contracts.
The number of contracts seems to be declining, to be replaced by “mega deals” which can be worth more than 20m pounds per annum.
The research is carried out annually. ITNET is a leading supplier of IT, business process and e-services. Its public sector division has 20 per cent of the local government outsourcing market.