£45 Billion in Public Sector Annual Savings Lost Through Archaic Technology
It has been a very busy few weeks for public sector technology. Hot off the heels of the AI opportunities Action Plan and the NAO's paper on government’s approach to technology suppliers, this week will see the release of “The State of Digital Government” report. This new report is based on insights from over 500 leaders across 120 organisations data from 100 plus entities and input from 65 stakeholders across public private and 3rd sectors. The major headline of this publication is that public sector missed out on £45 billion of annual savings because of archaic technology.
Findings will show that over one-in-four digital systems used by central government were found to be outdated. In the worst cases, this figure almost tripled (70%). This outdated technology can rack up huge maintenance costs, ultimately resulting in the taxpayer paying out three-to-four times more than if the technology was kept up to date. Furthermore, a growing number of these legacy tech systems are “red-rated” for reliability and security risk.
Cumulatively, the use of old and outdated technology, including public services that cannot be accessed online and require in-person support or physical letters, costs the public sector £45 billion in productivity savings.
Technology Secretary Peter Kyle said:
“Technology that sits at the foundation of our country has been left to wither and decay under the hands of the previous government, too often grinding to a halt and stalling essential public services – racking up a huge bill for the taxpayer.”
“It doesn’t have to be this way – and it won’t be with our Plan for Change. There is a £45 billion jackpot for the public sector if we get technology adoption right, that’s twice the size of the black hole we faced when we took office, and it’s not an opportunity we can let pass us by. The new findings are also expected to show government departments have been pushed towards bringing in contractors and consultants to complete basic technological tasks instead of full-time staff. This trend was driven by weak salaries and headcount restrictions that stopped departments. This is despite them costing 3 times more than civil servants and eating up £14.5 billion in taxpayer money a year.”