VAR calls for £1bn IT efficiency pot

Logicalis urges government to provide funds for IT cost-cutting measures

Integrator Logicalis has called on the government to stump up £1bn to fund locally managed IT and communications efficiency projects.

The VAR is urging Westminster to provide the cash to allow regional education and health bodies, as well as local government, to invest in IT cost-cutting projects. This would tie in with the government's wider economic support plan and would facilitate some of the public sector savings called for in the Gershon report, according to Logicalis.

The reseller says the money could come into play as early as the next budget in three month's time and could help provide demonstrable return on investment within three years. Of the £1bn pot, Logicalis suggests that £500m could fund datacentre virtualisation and consolidation, £250m could be put aside for shared service datacentre investments, £150m for local broadband unbundling and communications network integration, and £100m for self-service contact centre investments.

Managing director Tom Kelly said: "The UK government is looking to stimulate the economy in bringing forward major capital projects, but has so far ignored investment in locally driven ICT efficiency projects. At a time when the government needs money to fund economic growth, missing this opportunity to both stimulate and save would be tantamount to negligence.

"As the new fiscal year approaches, we are calling for the government to set aside appropriate provisions for local investment in ICT efficiency and innovation projects that will really make a difference in reducing public sector expenditure and increasing the quality of services.”

Logicalis believes the £1bn would allow local authorities to invest in shared IT projects and the renewal of IT and communications kit with more efficient technology. Solutions director Chris Gabriel claimed public sector bodies could realise impressive savings and would be able to retain all savings made.

“For every £1 spent of this fund, local government, health or education services would see a return of at least £3 in efficiencies by 2012," he said. " By the time we are out of the recession a return of investment could already have been achieved.

"We are working today with all of the sectors considering these efficiency measures. A government provision of this central fund would without doubt enable investment in updated ICT systems that would produce tangible and measurable savings across the UK public sector that the economy needs.”