1.36 This workstrand has identified that significant annual savings in the cost of back office operations and IT are deliverable. Compared to a 2007-08 baseline, in three years time, it is estimated that the annual cost of back office operations could be reduced by around £4 billion and the estimated annual cost of IT could be reduced by around £3.2 billion (the latter including savings arising through collaborative procurement). Some of the estimated savings will already be underway or planned as part of the current spending review period, but there is considerable scope to go further.
1.37 The savings that have been estimated should be taken into account in determining departmental settlements, taking note where appropriate of savings already made and any substantial concentration of major IT-enabled change projects. It is the task of management to deliver these savings, but this workstrand has set out a suite of recommendations and best practice examples to facilitate this process.
1.38 In future, management information on back office operations and IT should be available on a regular, consistent, auditable and transparent basis, and be used to benchmark across the public sector. A system of Operational Reviews should be introduced to examine spending effectiveness and to ensure that poorer performing organisations improve. These reviews should be driven by the most senior leaders across the public sector. Embedding this new approach will drive sustained operational improvement across the public sector and deliver increased value for money and effectiveness in the delivery of public services in the years ahead.