Channel eyes clearer approach to IT procurement following government report

A review into government spending by Topshop owner Sir Philip Green that highlights “shocking” spending processes has prompted a fast response from the channel.

Sir Philip’s report, released today, focuses on the procurement of goods and services including IT print and office supplies. He was asked to look into government spending by the Prime Minister, David Cameron.

Sir Philip reports that a lack of a centralised approach means different departments pay hugely different prices for the same items. Sir Philip is quoted as saying: “The process is shocking. There's no reporting, there's no accountability.”

Mike Rodwell, commercial director at Computacenter, comments: “If Sir Philip can reduce the complexity that exists today and create a simpler, more sustainable model for the future, he will be well on the way to cutting millions of pounds of unnecessary spend from the public sector.”

Rodwell predicts that Sir Philip will bring in a more centralised regime and reduce the current level of IT procurement options. 

“Whilst this isn’t an easy process, rationalising and simplifying the model could be vastly beneficial. For example, the creation of a two-tier model where at the commodity (sub £5k) end, an open e-auction portal could be created to enable efficient sourcing of low value items from competing companies who have not had to endure significant costs in becoming ‘approved’. The e-portal would be self regulating in terms of competitiveness and any poor performers highlighted by simple ‘user feedback’.”

He continues: “For larger purchases, there are often competing frameworks that vie for the same business. While this may seem a good thing, it is often counter-productive as supplying companies not only make significant investments in becoming approved, they also invest heavily in presales resourcing to win more complex projects.  Arbitrary decisions can often discount this investment and lead to increased pricing in future bids thereby potentially removing the competitive element.

“Sir Philip will almost certainly investigate the number of frameworks in situ and how governance is applied to ensure that the most able suppliers provide value for money for the long term while securing a realistic return on their investment.”