Government Pays Out £8bn Excess for IT Incompetence on Outsourced Government Projects

The European Services Strategy Unit is committed to social justice, through the provision of good quality public services by democratically accountable public bodies, implementing best practice management, employment, equal opportunity and sustainable development policies. The Unit continues the work of the Centre for Public Services, which began in 1973.

The Research Report identifies the scope of major cost overruns, delays and terminations of outsourced public sector ICT projects in central government, NHS, local authorities, public bodies and agencies in the last decade. Although there has been wide reporting of individual and department or authority-wide project failures in the national and ICT press but little analysis of the overall scope and evidence.

The report draws on the performance of a range of contract models including outsourcing contracts, Public Private Partnerships (PPP), Private Finance Initiative (PFI) and Strategic Service-delivery Partnerships in central and local government, the NHS and other public bodies. It excludes medium/small contracts. Only contracts and projects with major cost overruns, delays and contract renegotiations and terminations have been included in the analysis.

Cost overruns, delays and terminations: 105 outsourced public sector ICT projects

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