4.16 Comparing the cost of the information technology services provided by EDS with other organisations' costs can provide important information on the value for money provided by the partnership. We endorse the Department's attempts to benchmark the cost of services delivered through the partnership. This has enabled the Department in its first round of benchmarking to find comparative information for the cost underlying around 37 per cent of its annual expenditure with EDS.
Recommendation 13 | The Department should continue to use benchmarking as a key tool for assessing the value for money of its partnership with EDS. It should consider how it could collect, analyse and present the information in such a way that it can be used in the evaluation of proposals for new work as well as for assessing the value for money of existing activities. It should also consider extending the benchmarking to include direct comparisons of EDS efficiencies and costs in operating and maintaining information systems. |
4.17 The Department had difficulty in collecting price and cost information from other organisations. EDS was also, in some cases, contractually prevented from letting the Department share commercially sensitive data with third parties.
Recommendation 14 | In view of the difficulty in obtaining benchmarking data, the Department should explore the scope for using commercial organisations or benchmarking clubs to gather this information and concentrate its own resources on specifying the areas where external comparisons are needed and on interpreting the results. |
Recommendation 15 | The Department should establish a protocol with EDS on the provision and use of data for benchmarking in order to clarify the part EDS is prepared to play in benchmarking exercises. The protocol should specify what information EDS is prepared to offer the Department and what it is prepared to supply to others, either directly or through the Department. |