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European public services organisations over-spending on technology by at least £2.4 million

European public services organisations over-spending on technology by at least £2.4 million

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A total of 94% of European public service organisations are under pressure to reduce costs during the on-going pandemic, yet an inability to optimise IT spending is significantly hampering efforts, Insight research has found. For example, unused software licences cost these organisations an average of £2.4 million/€2.64 million a year – enough to pay the wages of 50 skilled IT specialists.

The inability to optimise IT costs means organisations have to find savings elsewhere. Since March 2020, 52% of organisations have downsized their workforce, and almost a quarter (23%) have downsized the IT team specifically. 46% are sweating IT assets for longer, and 36% are consolidating physical office facilities. In the same period, investment in areas such as software, IT support and infrastructure has increased.

Yet, the majority of IT teams said these investments weren’t as strategic as they should be, leaving room for optimisation. 48% of IT teams say they need to optimise their IT support investment; 51% software; 61% private cloud and 69% Infrastructure-as-a-Service.

Emma de Sousa, Senior Vice President EMEA at Insight, said: “In the current environment, public sector organisations need to make cost savings. But equally they need to avoid decisions that could impact their capacity to execute Digital Transformation plans and deliver essential services.”

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