Source: IBS (Public Services)

11 November 2005

Gershon Review encourages local authorities to consider more innovative approaches

More than a third (34%) of local government revenues officers believe that sharing IT procurement and services holds the key to achieving the savings demanded by the Gershon Review[1] over the next year. Nearly 40% (39%) believe that streamlining processes through IT will bring the bulk of Gershon savings in 2005.

Beyond 2005, a further 38.5% of local government revenues officers view shared services and collaborative procurement of IT and other services as the key to achieving Gershon savings. The research was commissioned by IBS OPENSystems, a leading provider of software and services to local authorities and housing providers.

Bill Loughrey, Sales Director IBS, comments:

“It will get harder and harder to squeeze out the required 2.5% savings year on year – especially whilst many organisations are still investing in new technologies to enable e-government. The research suggests that local authorities recognise the need to introduce innovative ways of delivering service improvements, and many are embarking on collaborative strategies to make significant, consistent efficiency savings.”

Bill Loughrey, Sales Director, IBS, goes on to comment:

“A great example of successful collaborative working can be seen in the East Midlands Consortium. IBS customers Ashfield District Council, Broxtowe Borough Council, Gedling Borough Council and Newark & Sherwood District Council decided to implement a common procurement and evaluation system for their revenues and benefits system upgrades. By working together, the Councils were able to generate efficiency gains whilst developing smarter ways of delivering excellent levels of services to citizens. There are plenty of untapped opportunities for similar and even greater savings to be made through the sharing of services.”

The respondents (59%) also felt that Gershon report does not fully address the specific needs of local government. And half (52%) of those polled said that the focus on Gershon is distracting efforts from other important initiatives.

Ends

[1] The Gershon Review, announced as part of the spending review in 2004, states that public sector departments and local authorities must make 2.5% efficiency savings each year throughout the period in which the spending review covers (to 2008).

About IBS OPENSystems plc

IBS OPENSystems plc delivers software systems and related services to housing providers and local authorities across the UK. Previously IBS (Public Services) Ltd, the company is now an AIM listed company, having been bought and floated by Numis Securities Limited, an investment banking and institutional stockbroking business, in March 2005. For more information please visit www.ibsopensystems.com