Government Departments: IT Outsourcing

House of Lords written question – answered on 14th June 2005.

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Photo of Lord Harris of Haringey Lord Harris of Haringey Labour

asked Her Majesty's Government:

What incentive companies, to which information technology (IT) support has been outsourced by government departments, have to re-engineer existing IT systems to cut costs.

Photo of Lord McKenzie of Luton Lord McKenzie of Luton Government Whip

Public authorities are individually responsible for their own decisions in the purchase of IT goods and services that provide value for money.

Where the authority has a requirement for re-engineering of its IT systems as part of a contractual outsourcing agreement, it may either include performance obligations within its requirements specification, or seek to incorporate appropriate contract conditions within the contract between itself and the supplier.

The way in which those authorities specify their requirements to suppliers, within IT contracts, including the provision of mechanisms to incentivise supplier performance, is at the discretion of the authority concerned. This will depend on a number of factors including the authority's IT strategy in support of its business objectives, commercial considerations, and the potential marketplace response.

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