Public Sector Spending Cuts Will Lead To Service And Efficiency Improvements, Say IT Managers

A new survey with more than 100 IT Managers examining their attitudes to last week’s comprehensive spending review, has revealed that the majority believe that the cuts will lead to efficiency improvements, in the long run. The survey revealed that 67% believe that the proposed cuts will deliver long term benefits and improve services and / or efficiencies.

This may be because companies in the private sector have been on a cost cutting programme for the last 2-3 years, so IT professionals have first-hand experience of the benefits to be gained. Also, this may underline a general attitude toward the public sector that they have more room for cost cutting measures to be implemented. However, some 34% of respondents took the opposite viewpoint that the cuts will have a ‘damaging effect which will make recovery more difficult.

Perhaps unsurprisingly, business growth and job creation were identified as the areas which will feel the most impact as a result of the cuts, by the largest number of respondents. 35% of all respondents felt that ‘business growth’ would be most impacted by the cuts, closely followed by job creation, cited by 29% of all respondents. 19 % of respondents believed that training and development would be most affected and just 17% felt that innovation would be most impacted, as a result of the review.

This comes as the Prime Minister yesterday addressed the CBI on how the coalition government plans to drive growth to allow the private sector to create jobs, promising to improve access to finance, and announcing plans to unlock infrastructure projects in utilities, construction and IT. Amongst this they have pledged to invest £200 million in a network of “technology innovation centres” based in universities, over the next four years.

We all knew that there were some tough decisions to be made and the ramifications of last week’s cuts will clearly be widespread. However, it is encouraging see some glimmers of optimism from within the industry. As today’s announcement shows, innovation will be key to future growth and I believe that technology will play a transformative role in delivering efficiencies and success to UK businesses.

The survey reveals that a notable number of respondents believe that the spending review will actually improve service levels. As departmental budgets are cut, the need to do more with less and deliver the same levels of service with fewer resources requires a new approach. Cloud computing services are primed to help deliver more value with less investment and this will help both private and public organisations alike.

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Martino Corbelli is Marketing Director of Star.