Local public service IT delivering more for less says Socitm IT Trends 2010/11 – as organisations start to recognise that IT matters

• Higher service levels achieved despite cuts in resourcing of 2.6% since 2010/11 and predicted fall in staff numbers of 4%

• Modest growth predicted in communications and central ICT spending with capital spending forecast to fall by 8% and departmental spending by 14%

• Importance of IT now recognised for organisations' wider efficiency and modernisation goals

IT functions in local public services are delivering more despite reductions in budgets and staffing, says the latest issue of IT Trends, the annual survey published by Socitm on January 20.

Moreover, ICT budgets and staff cuts in 2010/11 were much lower than expected, supporting other evidence emerging from the survey that local public service providers are at last recognising the importance of IT investment for the achievement of wider efficiency and modernisation goals.

IT Trends, now in its 24th year, is based on a comprehensive questionnaire sent out to the heads of ICT of every local authority and other local public service provider in the UK. The responses provide factual information on scale and nature of the ICT resources in use, including expenditure, staffing levels and technologies. The survey also gathers opinions, and, combined with other data, and analysis by a panel of ICT experts, the IT Trends report provides a comprehensive and up-to-date view of the role being played by ICT in the delivery of local public services.

IT Trends 2010/11 shows that ICT managers remain concerned about the shrinking resource for ICT. However despite reduction in capacity, new ways of working appear to be more than compensating for this. Performance indicators compiled from Socitm's benchmarking activities show that ICT functions are delivering more with less and that standards are being maintained or improved.

In terms of technology, organisations are planning to sweat their assets for longer than originally planned. As local public service workforces become more mobile, laptop technology is a growing part of the technology estate. Use of thin-client devices has grown in the last year, and virtualisation, sharing of equipment and hot-desking are part of the ICT cost reduction strategy. If we look to the future, virtualisation will continue to be used to reduce the cost of almost every aspect of the ICT infrastructure. Cloud computing has not yet become a major part of the sourcing strategy, but will in the next twelve months.

ICT functions appear to be doing better in playing a strategic role according to this latest survey. Respondents were asked to identify the influence that ICT has over nine key IT related activities within the organisation, some of which are strategic, and some utility functions. The responses received suggest that ICT is beginning to be regarded by an increasing number of organisations as a key enabler of change.

More authorities appear to be going down the route of general efficiency measures enabled by ICT such as mobile and flexible working with accommodation rationalisation as the major means of delivering efficiency gains. Shared services, partnerships and joint projects are also high on organisations' priorities. The report details savings that are expected to be delivered by these initiatives.

Socitm has advocated resource sharing for many years and the survey reveals that joint work and joint funding does appear to be of growing interest in 2010/11, as an obvious solution to shrinking budgets. Sources of external funding appear to be drying up and efficiency savings from within the ICT functions are declining. Borrowing to finance ICT schemes has also doubled since 2009 indicating revived confidence in the benefit of investing in ICT.

In terms of future technologies, cloud computing has not yet become a major part of the sourcing strategy, but IT Trends respondents are showing a growing interest and are expected switch to the G-Cloud next year assuming it becomes a reality rather just a concept. There is clearly much interest in PSN - more so, it appears, than in GCloud - but intentions expressed in IT Trends one year are not always matched by take-up in the next.

Overall, analysis of IT Trends data suggests that ICT in the local public sector has come out of the crisis it faced in 2009 stronger and fitter, and that in the current economic climate, organisations are starting to recognise that IT matters.

'The report provides evidence of what we have been sensing' says Socitm President Jos Creese, writing in the foreword to the report. '[There is] a new confidence in what ICT can deliver, with ICT investment being made to drive wider savings and change. Moreover, ICT is no longer just about supporting or automating the 'back office' it is being recognised as a delivery function in its own right, through contact centres and self-service, both internally and externally'.

The IT Trends 2010/11 report is available free of charge to those who replied to the survey, £295 for Socitm Insight subscribers, £450 for Socitm members and £495 for all others).

A CD-ROM version of IT Trends 2010/11 complete with the data is also available. This contains the individual survey responses (not identified) and allows users to undertake their own analyses. Copies are available now (cost £595, or £395 for Socitm Insight subscribers) and can be ordered from www.socitm.net.

Press copies of the executive summary (pdf format) are available now.

Press enquiries:

John Serle, IT Trends Editor

Tel: 07867 907372 email: john.serle@socitm.net

Vicky Sargent, Socitm Press Office 

Mobile: 07726 601 139 email: vicky.sargent@socitm.net

Notes for Editors

Socitm has undertaken a survey into the application of information and communications technology in local government since 1987. The aims of the survey are to:

• help organisations providing local public services plan and manage their ICT services
• influence legislation and central funding of ICT in the local public sector
• facilitate information sharing
• encourage joint procurement and service sharing
• provide a source of information on the application of ICT in local public services for officers, councillors, ministers and government officials, suppliers, consultants, academics and anyone else with an interest in this sector.

Socitm is the professional association representing IT professionals within local authorities and other public services together with members from the private and civil society sectors. Its vision is the transformation of public services through the effective application of IT. With approximately 1800 members from 1000 different organisations including 95% of all UK local authorities, Socitm provides a widely respected forum for the promotion, use and development of IT best practice. It is also playing a leading role in supporting the transformation of local authorities and other public services in the UK though IT-facilitated change.