Efficiency fears as IT budgets are cut

Local governments throughout Europe are being forced to cut back on consultancy spending, according to new research. Many EU authorities are highly dependent on external IT consultants and there are worries that if budgets are slashed efficiency will suffer. A new survey published on the use of external IT consultants in local authorities in Europe, including 41 in the UK, revealed that 85% of British organisations rely on external consultants to help them run their IT systems. Only six of the 41 said their organisations were able to function autonomously, raising questions about the impact of the governments proposed spending cuts on the efficiency of UK local government. Thom Rubel, vice president of research at IDC Government Insights commented that flexible software is needed by local government to adapt to changing government legislation and regulations. The research, carried out by software firm Unit4 Business Software, says over-complex software is one of the main obstacles for local government in adapting to change. Although external IT consultants can reduce the problems of complex software and disruption, the government wants to reduce IT spending by £95m this year. Experts have already voiced concern about the impact of radical cuts in consultancy budgets. Fears have been raised as to whether the cuts in consultancy spending could cause financial, as well as efficiency problems for local governments. Anwen Robinson, managing director for Unit4 Business Software, said that "without systems that can be changed easily to reflect this new operating environment, local government will suffer from inefficiencies and a negative impact on finances resulting in budget overruns".