Blind Cost Cutting Is A Recipe For Disaster

The Chancellor has announced cuts to local government budgets equating to 25 per cent over the next four years.

This will be in conjunction with the devolution of financial control to councils in order to support 2011-12 reforms to local services. For local government to deliver such dramatic cuts whilst retaining strong financial control over spend, software systems that can help deliver financial transparency are crucial.

If you don’t know how much you are spending, how can you possibly deliver significant spending cuts? It may sound common sense but it is vital to know accurately and in real-time how much you are spending, when and what you are spending it on in order to effectively cut spend.

It may seem surprising but there are local governments and other public sector bodies that cannot readily access this type of information because they do not have the appropriate financial, procurement and analytical software systems in place. As the saying goes, “Information is king” and with the public sector having to make such deep cuts, this has never been more poignant.

So if you are being forced to cut spending over the next few years, make sure that you have the right ICT infrastructure in place to enable you to do this. Without the correct ICT framework, you will be making cuts blindly that are likely to be ill-informed and potentially damaging to your overall cost-cutting strategy.

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Dean Dickinson is Managing Director of Advanced Business Solutions, formerly COA Solutions. Dean has been in the finance software business since 1990. He was part of the senior management team at QSP/Arelon prior to the acquisition by COA Solutions at which time he became Deputy Managing Director for the business as a whole. Since the acquisition of COA Solutions by Advanced Computer Software Group in February 2010, Dean has become Managing Director for Advanced Business Solutions. He is a specialist in consultancy and has a strong knowledge of business processes within a high volume/high value environment.