ITProPortal – The biggest kept secret: How the public sector can reduce IT spend

Shrinking IT budgets continue to put pressure on public sector executives to reduce their IT spending.

With the public sector’s IT infrastructure being more complex than ever, knowing what to buy and the ROI of the purchase adds to the confusion. Yet, despite this complexity, industry insiders, commentators and even the UK Government see room to free up budget within IT departments. For example, in 2015 the Cabinet Office raised concerns about how much money the public sector was spending on Enterprise Resource Planning (ERP) software after it came to light that the public sector was spending approximately £290m on Oracle products, the spend has increased by the fact that there are so many versions of the software and support options and costs. This called for a review of cheaper alternatives.

The problem with finding a cheaper alternative is that it might not be that simple. ERP software is deeply embedded within the public sector and simply switching to a more cost-friendly vendor could take considerable time to implement, cause unwelcome business disruption, and may also limit its efficiency.

Nonetheless, with ERP vendors like SAP and Oracle charging between 14% and 22% of license fees for support and maintenance, there could be significant savings that are being overlooked and much needed by many public sector organisations looking to receive premium support and maximise their IT budgets.

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ITProPortal, 8th August 2017

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