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Public sector missing opportunity to tackle IT overspend

Almost all European public services organisations (94%) are under pressure to reduce costs due to the corononavirus pandemic, claims Insight.

Its research shows that as a result 52% have downsized their workforce, 46% are making an effort to sweat IT assets for longer and 23% have downsized their IT teams.

However, the same organisations are also overspending on IT, with each wasting an average of £2.4 million on unused software licences alone – enough to cover the wages of 50 skilled IT specialists, says Insight.

Other sources of overspend are: duplicate technology because of lockdown purchases (cited by 66% of organisations); unexpected purchases by departments outside IT, which adds an average of £1.2m a year to cloud services costs; an inability to negotiate effectively with software vendors (75%); poor lifecycle management (72%); and lack of IT consolidation, with different departments using multiple applications with the same functionality (74%) or having separate contracts for the same software (61%).

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