The government is wasting "an obscene amount of public money" because it lacks insight on market prices for IT, according to a new report by the Public Administration Select Committee (PASC).
The PASC first published a report in July 2011 that listed its concerns on the government's IT procurement strategy and the latest report looked to to assess how far the government has gone to address the issues raised.
In the document the PASC claims that a lack of up-to-date and accurate information about IT prices is obstructing the government's cost reduction programme.
"Government IT procurement strategy is still lacking in its commitment to independent benchmarking of contracts with transparent data [and is] failing to understand the risks of legacy systems," it said in its report.
"[It also] remains unclear about how to address the IT skills gap with sufficiently senior and experienced people, and must move faster to implement 'digital by default' to design better IT services."
The PASC advised the government to work with independent advisors and the National Audit Office (NAO) to collect accurate spending data from government departments, to set benchmarks for future spend and identify future investment that will be needed to replace legacy systems.
The PASC also recommended an investigation into allegations of "cartel-like behaviour among suppliers" and registered its concern that the government lacks the skills needed to manage procurement contracts.
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