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Costs reduced and user satisfaction up says benchmarking summary

Friday 6th August 2010

Benchmarking Services: Summary for 2009

Socitm's Benchmarking services summary for 2009 says local authority ICT managers have continued their success in reducing costs whilst driving up user satisfaction.

But the report also says that the reductions in cost - ICT spend per user has dropped by 15.75% in real terms since 2008 and by 19.3% since 2006 - are worrying.

Organisations should be maintaining or even increasing ICT spend at the current time, it says, in order to achieve larger savings through ICT facilitated developments like pervasive flexible working, shared services, application of lean thinking, and e-procurement.

The reductions in spending suggest that top management teams do not take this view, or doubt the ability of ICT to deliver. The report says this could be explained by weaknesses of ICT governance, and in particular, the reluctance of ICT leaders to focus on benefits realisation.

ICT managers must ensure that project appraisal and benefits realisation management place responsibility fairly. Blaming ICT when a service fails to get the benefits it promised from a project saps the credibility of the ICT function, militates against investment in new ICT-enabled transformational projects, and limits the organisation's ability to deliver savings without cutting front line services.

The report concludes that ICT functions must pay greater attention to project management rigour, and top management must attend to the governance regime within which the organisation selects and invests in ICT projects. Service managers must in turn take full responsibility for improving the business processes that they control and getting the best out of IT investment.

Benchmarking services summary for 2009 is now available to view and download for employees of organisations that subscribe to Socitm Insight. This requires registration on this site so that you can log in. Go to the 'register' button (see panel in left hand margin) and when you get to the registration page you will be able to use a look up facility to see if your organisation is a subscriber. If they are, you will be able to access Socitm Insight publications when logged in.

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