Category Archives: government

NAO says HMRC is tackling tax evasion but needs to further exploit IT systems’ potential

By David Bicknell

A report by the National Audit Office (NAO) has applauded HM Revenue & Customs’ (HMRC) work in tackling tax evasion to deliver £4.32 billion of additional tax yield between 2006 and 2011. HMRC also reduced staff numbers and introduced a range of improvements in its compliance work.

But, the NAO says, although the Department has introduced new IT capabilities to identify incidences of evasion more effectively, it is not yet exploiting the full potential of the new systems. It has also had to defer and reduce the scope of projects to keep within annual budgetary limits, leading to reductions in benefits.

According to the NAO’s report, the Compliance and Enforcement Programme cost £387 million to 2011-12 and was made up of over 40 projects intended to increase compliance yield – the measure of additional tax arising from compliance work – by £4.56 billion between 2006-2011.

Against that target, the Programme actually reported additional yield of £4.32 billion over the five years to March 2011, with HMRC forecasting that it will generate an additional £8.87 billion of yield between 2011-12 and 2014-15. However, the NAO points out, HMRC will not achieve all of the Programme’s forecast benefits because of changes to scope or slippage in delivering projects, as well as over-optimism in its forecasts.

HMRC reduced staff numbers by the planned amount of 3,374 full time equivalents by the end of 2008-09, two years ahead of schedule. It also generated an improvement in productivity -defined as the level of yield generated by each full time equivalent – of approximately 36 per cent, below its forecast of a 42 per cent improvement. HMRC did not routinely measure the impact of the Programme on customer experience.

Amyas Morse, head of the National Audit Office, said:

“This major programme has helped HMRC to increase tax yield substantially and has introduced ways of working which will strengthen HMRC’s compliance work in future.

“The Department could, though, achieve better value for money from its investment in compliance work by improved understanding of the impact of individual projects and ensuring that its staff have the capacity to exploit new systems to the full.”

On improving HMRC’s compliance work, the NAO report says the following:

 “The Programme has improved HMRC’s ability to undertake compliance work but it has yet to exploit the full potential of the new systems. In particular, the new ICT systems can substantially improve how HMRC assesses evasion risks to identify cases for investigation. HMRC is embedding new systems and approaches into working practices. We assessed the implementation of a sample of projects:

Project design. Overall, HMRC managed design phases well but, particularly on projects to implement new ICT systems, it did not sufficiently consider redesigning business processes or developing the staff capability needed to exploit the full potential of the new technologies.

Implementation. HMRC did not always communicate clearly the rationale for projects and, although it provided training and guidance, these were not always timely or requirements were underestimated.

Assessing the performance of new systems. HMRC has established management information on the use and performance of new systems and, over time, will seek to use this to better understand the impact on business performance.

HMRC – The compliance and enforcement programme

The challenges of shifting US Government IT into the Cloud

By David Bicknell

Good piece from Federal Computer Week (FCW) in the US about the challenges of shifting Government IT systems towards Cloud delivery.

Alan Joch’s piece, ‘Is government procurement ready for the Cloud?‘ points out that although cloud computing will offer speed and agility with agencies anble to take IT services up or down as necessary to quickly support new mission plans or workload changes, the reality – for now –  has yet to hit procurement practices.

As Joch says, “Many IT procurement practices and contracting vehicles were designed to help managers provision hardware and software, not on-demand services. Can the current acquisition practices translate easily to the dynamic world of cloud computing?”

Not really, says Barry Brown, executive director of the Enterprise Data Management and Engineering Division at Customs and Border Protection. He echoed a view shared by others in the federal government, and told FCW that for cloud computing, “The technology delivery model has changed. What has not changed is the procurement model.”

The US government has a Cloud-first policy which seeks to reduce costs and increase IT acquisition flexibility by pushing federal IT systems towards cloud environments. Each agency has until May to identify three IT resources that it will move to the Cloud.

But, reports FCW,  the move is straining traditional procurement departments. Rather than promoting speed and agility, in some cases Cloud initiatives are spawning extended contract negotiations and legal challenges that are making it take even longer for agencies to get the resources they need.

US Government Cloud First Policy

Some good IT project news from America

By David Bicknell

It’s always good to be able to write about IT project success. So I’m following up on Steve Kelman’s report in Federal Computer Week in the US about an October 2011 GAO report called Critical Factors Underlying Successful Major Acquisitions, which details seven recent government IT systems acquisitions – costing from $35 million to $2 billion – that have met their targets in terms of schedule, cost, and performance.

Aside from its conclusions on the critical success factors, the report says this about Agile software development: 

“….the use of Agile software development was critical to the success of the program. Among other things, Agile enhanced the participation of the end users in the development process and provided for capabilities to be deployed in shorter periods of time.”

As Steve suggests, the report should get wider circulation to show us what we might learn from success instead of from failure.

We’d be interested in your views.

School report on Govt ICT Strategy – a good start

By Tony Collins

In a review of progress on the Government’s ICT Strategy after six months, the National Audit Office says that the Cabinet Office has made a “positive and productive start to implementing the Strategy”.

The NAO says that at least 70 people from the public sector have worked on the Strategy in the first six months though the public sector will need “at least another 84 people to deliver projects in the Plan”.

The UK Government’s ICT Strategy is more ambitious than the strategies in the US, Australia, Netherlands and Denmark, because it sets out three main aims:

– reducing waste and project failure

– building a common ICT infrastructure

– using ICT to enable and deliver change

The US Government’s ICT Strategy, in contrast, encompasses plans for a common infrastructure only – and these plans have not produced the expected savings, says the NAO.

In a paragraph that may be little noticed in the report, the NAO says that senior managers in central government have plans to award new ICT contracts (perhaps along the pre-coalition lines) in case the common solutions developed for the ICT Strategy are “not available in time”.

The NAO report also says that “suppliers were cautious about investing in new products and services because of government’s poor progress in implementing previous strategies”.

Of 17 actions in the Strategy that were due by September 2011, seven were delivered on time. Work on most of the other actions is underway and a “small number” are still behind schedule says the NAO.

The NAO calls on government to “broaden the focus to driving business change”.

Some successes of the UK’s ICT Strategy as identified by the NAO:

* The Cabinet Office has set up a small CIO Delivery Board led by the Government CIO Joe Harley to implement the ICT Strategy. The Board’s members include the Corporate IT Director at the DWP, CIOs at the Home Office, MoD, HMRC, Ministry of Justice and Department for Health, together with key officials at the Cabinet Office. The departmental CIOs on the Board are responsible directly to Francis Maude, Minister for the Cabinet Office, for implementing the ICT Strategy in their departments and are accountable to their own minister. No conflicts have arisen

* Senior managers in central government and the ICT industry are willing to align their strategies for ICT with new cross-government solutions and standards but need more detail.

*  Some suppliers have offered help to government to develop its thinking and help accelerate the pace of change in ICT in government.

* The Cabinet Office intended that delivering the Strategy would be resourced from existing budgets. Staff have been redirected from other tasks to work on implementing the Strategy. “We have found collaborative working across departmental boundaries. For example HMRC and the MoD have combined resources to develop a strategy for greener ICT. Teams producing the strategies for cloud computing and common desktops and mobile devices have worked together to reduce the risk of overlap and gaps.

* The BBC has shown the way in managing dozens of suppliers rather than relying on one big company. For BBC’s digital media initiative, the Corporation manages 47 separate suppliers, says the NAO.

* The Cabinet Office intends that departments will buy components of ICT infrastructure from a range of suppliers rather than signing a small number of long-term contracts; and to make sure different systems share data the Cabinet Office is agreeing a set of open technical standards.

* Some of the larger departments have already started to consolidate data centres, though the NAO said that the programme as a whole is moving slowly and no robust business case is yet in place.

* The Cabinet Office is starting to involve SMEs. It has established a baseline of current procurement spending with SMEs – 6.5% of total government spend – and hopes that the amount of work awarded to SMEs will increase to 25%. Government has started talking “directly to SMEs”, says the NAO.

Some problems identified in the NAO report:

* Cloud computing and agile skills are lacking. “Government also lacks key business skills. Although it has ouitsourced ICT systems development and services for many years, our reports have often stated that government is not good at managing commercial relationships and contracts or procurement.”

* Suppliers doubt real change will happen. The NAO says that suppliers doubted whether “government had the appropriate skills to move from using one major supplier to deliver ICT solutions and services, to managing many suppliers of different sizes providing different services”.

* The Government CIO Joe Harley, who promoted collaboration, is leaving in early 2012, as is his deputy Bill McCluggage. The NAO suggests their departures may “adversely affect” new ways of working.

* The NAO interviewed people from departments, agencies and ICT suppliers whose concern was that “short-term financial pressure conflicted with the need for the longer-term reform of public services”.

* The culture change required to implement the Strategy “may be a significant barrier”.

* The Cabinet Office acknowledges that the government does not have a definitive record of ICT spend in central government (which would make it difficult to have a baseline against which cuts could be shown).

* The Cabinet Office has not yet defined how reform and improved efficiency in public services will be measured across central government, as business outcomes against an agreed baseline.

**

Amyas Morse, head of the National Audit Office, said today: ” ICT is going to play an increasingly important role in changing how government works and how services are provided.

“The Government’s ICT Strategy is in its early days and initial signs are good. However, new ways of working are as dependent on developing the skills of people in the public sector as they are on changes to technology and processes; the big challenge is to ensure that the Strategy delivers value in each of these areas.”

NAO report:  Implementing the Government ICT Strategy: six-month review of progress.

CSC criticised again in The Times

By Tony Collins

The Times has followed up its three pages of coverage of the NPfIT yesterday with an article in which the chair of the Public Accounts Committee, Labour MP Margaret Hodge, criticises one of the programme’s main suppliers CSC.

Hodge tells The Times she was surprised to learn that CSC was hoping for a revised NHS deal – worth about £2bn – after it failed to deliver fully functional software to any of 166 NHS trusts in England.

CSC has said in a filing to the US Securities and Exchange Commission that, based on events to date, it does not does not anticipate that the NHS will terminate its contract.

CSC gave a series of reasons in its SEC filing why the UK Government may retain CSC and its NPfIT contracts, though it conceded that the outcome of its talks with the Department of Health, is uncertain.

CSC also said it has cured or is in the process of curing the alleged events of default. It asserted that failures and breaches of contract on the part of NHS have caused delays and issues; and it said that if the NHS wrongfully terminated the contract on the basis of alleged material breach, CSC could recover substantial damages.

Hodge told The Times:

“Any private sector company that cares so little about the public interest that they are prepared to extract this kind of money from the public purse should not be given the right to work for the Government again.

“If they are going to take such a private sector attitude to it that they don’t give a toss about the public interest they should be treated like a cowboy builder.”

CSC says it has made a significant investment in developing systems for the NHS and has demonstrated a strong and continuing commitment to improving the quality of healthcare in England. It says it has a demonstrable track record of successful and widescale delivery to NHS within the National Programme and beyond.

The Times also reported that Christine Connelly, the Department of Health’s former CIO,  was bought a £416 first-class train ticket for a visit to a hospital at Morecambe, and was flown to San Francisco and Seattle at a business-class rate costing £8,278.80.

American “cowboys” blamed for NHS fiasco – The Times

CSC confident on £2bn deal says The Times

Chief procurement officer: “40% of government contracts in September were with SMEs”

By David Bicknell

The Government has put forward the Olympic Delivery Authority as an example of procurement best practice in the public sector.

Chief procurement officer John Collington told the Cabinet Office  procurement conference earlier this week: “They have delivered the Olympics in time and on schedule in terms of the work so far and they have done so with openness and transparency.

“We in government must take the same approach, so every procurement must start with the principle, what will that supply chain look like and how will SMEs be allowed into that supply chain.”

Collington said that in September 2011, 1600 contracts, or 40% of government contracts, were agreed with small and medium sized enterprises (SMEs), compared with only 5% in January.

Coillington has promised more business with SMEs in the future, along with new commercial contractual models, more instances of re-use of equipment and systems across government and more savings and value for money.

Banned – consultants on some procurements
Government is giving more business to smaller firms

Where is the Government CIO?

By Tony Collins

Joe Harley, Government CIO

Joe Harley, the government CIO, is much respected inside and outside of government.

Amiable, straight-talking and influential, he could be the Government’s civil service ambassador for change.  Like his predecessor John Suffolk he could use conferences and public events to talk inspirationally about the dystopian costs of government IT and what to do about them. He could jolt the complacent into an awareness of their self-deceptions.

Why hasn’t he? If the Government CIO has much to say  is not for the public ear.  While there has been talk in recent weeks of how five corporations control GovIT, and how it can cost up to £50,000 to change a line of code, Harley has been silent.

Where does the Government CIO stand on the need for major reform of the machinery of government, on the sensible risks that could save billions?

Is the top man in Government IT inspiring his colleagues and officials in other departments to do things differently?

It’s true that Joe Harley has enough to do – perhaps too much – in his “other” day job as CIO and Director General of Corporate IT,  Department for Work and Pensions (DWP).

He is a leader of the programme that is helping to deliver Universal Credit. He chairs the public sector-wide CIO Council; and his trying to do more with a smaller budget will require all the skill and the experience he acquired as global CIO for ICI Paints and before that as BP’s IT Vice President for global applications, hosting and consultancy.

These responsibilities give Harley a chance to point to a new way, to confront unequivocally the costs of GovIT, to lead by example: by replacing gradually the long-term contracts and monolithlic suppliers of old; by listening to SMEs and employing them directly, and in more than a token capacity.

What has happened is the opposite. HP, Accenture, IBM and CapGemini are safe in his hands.

The DWP has recently awarded those suppliers new and conventionally-large, long-term contracts. Headlines in the past two months hint at how the DWP will, for years to come, dance to the tune of its large IT suppliers:

“DWP signs fifth large deal with HP”

“DWP awards Accenture seven year application services deal”

“DWP awards IT deals to IBM and Capgemini”

These deals could be seen as a protest against all that Francis Maude, Minister for the Cabinet Office, stands for.

In March Maude spoke of a need for big contracts to be broken down into “smaller, more flexible projects” which would “open up the market to SMEs and new providers”. Maude wants to end the oligopoly of big GovIT suppliers – but does he have an influence at the DWP?

Nobody is suggesting that Harley shows a hard fist at the negotiating table. But he should assert himself sufficiently in public to make us believe that his appointment as Government CIO was more than the filling of a vacuum.

He doesn’t need to lead by radiating charisma; but can you inspire from the shadows?  Billions is spent unnecessarily each year on not changing the government administration. So it’s time Harley advocated change.  He could be a standing reproach to the myth that senior civil servants do all in their power to obstruct change.

Deposing the muscular monoliths in the supplier community will require a consuming interest in innovation, courage (risk-taking) and a passion to cut costs. Harley has many strengths and qualities. Surely these are among them. But if they’re not manifest soon, some in government will wonder if the Government CIO has gone missing.

Links:

DWP awards 7-year deal worth up to £350m to Accenture

DWP signs fifth large deal with HP

DWP awards deals to IBM and Capgemini

DWP signs big contracts with IBM and Capgemini

Time to move beyond ‘Paint it Black’

By David Bicknell

I can see what Craig Dearden-Philips is getting at in this blog, but I’m not sure it needs to paint such a dire economic picture. There is too much talking down of the economy. No-one will spend any money because everyone from politicians to forecasters to social entrepreneurs to journalists  is trying to out-do each other and paint the blackest picture. There’s no leadership there – just followship.

Dearden-Philips argues that “a crisis of the sort we’re probably heading into will, one way or another, make it far more attractive to reinvent than cut back services. Careers – political and professional – will not survive if slash’n’burn is the modus operandi. For those of us who have long been advocating a reinvention of public services this could end up being, our moment.

“So spin-outs, community-based services, co-ops, innovations that allow decommissioning – all of these things could have a political attractiveness that is currently missing. The sadness is that it will take things getting really quite catastrophically bad before that happens.”

He’s right that spin-outs, community-based services, co-ops, innovations that allow decommissioning do need the right landscape to thrive. But how many employees will feel like spinning out when the picture is painted this black? Better to cling on ‘inside’ than venture – an appropriate word – out and create something new. Employee ownership? Out there? No thanks. I’ll just stay here.

If the government wants to see mutuals thrive, it has to paint a picture of opportunity and  create the right environment to create enthusiam, drive, and investment. That means spurning the negative talk that’s all too easy to do and creating the right environment for change and the tools  – finance, procurement etc – to achieve it.

Is the government up to do the job? When it makes its next pronouncement on open public services, it has to provide the impetus to reinforce  a willing mentality that says ‘Yes, can do’ not ‘Paint it Black.’

I’m not saying it’s going to be easy. But that’s what governments are for: to govern and provide the right environment for change. 

Positive thinking, leadership and action please, not negative no-choices. Opportunity; not opt out.

Global 300 co-operatives generate $1.6 trillion revenue

The unavoidable truths about GovIT – by Cabinet Office official

The vast majority of GovIT is “outrageously expensive” says Chris Chant. “Things have changed and we haven’t.”

By Tony Collins

Chris Chant is one of the most experienced IT officials in central government. He was CIO at Defra where he led IT service improvement programmes with strategic outsourcing partners  including IBM. His reforms helped to change the way people worked.

He was also CIO at the Government Olympic Executive, part of the Department of Culture, Media and Sport. Now he is an Executive Director in the Cabinet Office working as Programme Director for the G-Cloud initiative.

In a cloud computing event hosted by the Institute for Government in London, Chant told it like it is. The points he make indicate that major change is less of a risk to public finances than keeping the machinery of government as it is.

He began his talk by thanking those in government IT who have been“working their socks off”. He had been talking positively to his teams in the last week and now “it is time to recognise some of the less positive aspects about what we do”.

He added: “We need to face some unavoidable truths head on about government IT as it has been done.”

These were his main points:

“The vast majority of government IT in my view is outrageously expensive, is ridiculously slow, or agile-less, is poor quality in the main and, most unforgivably I think, is rarely user-centric in any meaningful way at all.”

He said it is unacceptable:

–  That “80% of Government IT is controlled by five corporations”.

–  That “some organisations outsource their IT strategy in Government”.

–  That “to change one line of code in one application can cost up to £50,000”.

–  To wait 12 weeks to get a server commissioned for use.  He said: “That’s pretty commonplace. When you think in terms of using a service like Amazon the most problematic thing on the critical path is the time it takes you to get your
credit card out of your wallet and enter the details on screen”.

–  That the civil service does not know the true cost of a service and the real exit costs from those services – the costs commercially, technically and from a business de-integration standpoint. “So  how do we untangle our way out of a particular product or service. I cannot tell you how many times I have had the discussion that says: we need to get away from that but we cannot because of the complexity of getting out from where we are: all the things hanging on to that particular service that we cannot disentangle ourself from.”

– To enter into any contracts for more than 12  months. “I cannot see how we can sit in a world of IT and acknowledge the arrival of the iPad in the last two years and yet somehow imagine we can predict what we are going to need to be doing in two or three, or five or seven or ten years time.”

–  Not to know in government “how many staff we have on the client side of IT”. He said: “I have not yet met anybody who knows what that figure is. People know about small areas but overall we don’t know what that figure is.

– Not to know what IT people do. “So we don’t have any idea of the breakdown of that number that we don’t know either, surprisingly. I think that is outrageous in this climate, and in any climate.”

–  Not to know “what systems we own how much they cost; and how much or even if they’re used”. He said: “I know there are organisations that have turned off tens of thousands of desktop services merely to discover if they are used anymore; and when they do that they discover maybe one per cent are still being used. That’s completely unacceptable.”

– Not to know when users give up on an online service; “and it’s unacceptable not to know why they give up”. He said: “Of course it is unacceptable that they have to give up because the service does not fulfil their needs.”

– to have a successful online service that sends out reminders to use that service through the post.

–  Not to be able to communicate with customers securely and electronically when technology clearly allows that to happen.

– Not to be able to “do our work from any device we choose”. He said: “That is possible and has been for some time. It’s outrageous we cannot do that.”

– To pay up to £3,500 per person per year for a desktop service.

–  That “your corporate desktop to take 10 minutes to boot and the same amount of time to close down”. He said: “But that is the truth of what goes on everyday in Government IT and I suspect the public sector too.”

–  For staff to be unable to access Twitter or YouTube, when they use those services for what they do.

– For call centre staff not to be able to access the very service they are supporting at the call centre. “It sounds funny but  when you think of the consequences of that it is truly dreadful.”

–  To ensure people are working by restricting their access to the Internet. “If we cannot measure people by outputs where on  earth are we?”

Above all, said Chant, “it is unacceptable not to engage  directly with the most agile forward-thinking suppliers that are in the SME  market today and are not among the suppliers we have been using”.

Chris Chant’s talk

This is much of what Chris Chant said:

“A bunch of people have worked their socks off [but], through no  fault of their own, on the wrong thing for some time too… And it’s quite tough being in IT because, a bit like  electricity, it’s one of the rare things people seem to use almost all of the time…but we need to face some unavoidable truths head on about government IT as it has been done.

The vast majority of government IT in my view is outrageously expensive, is ridiculously slow, or agile-less, is poor quality in  the main and, most unforgivably I think, is rarely user centric in any  meaningful way at all…

I’ll give you my personal view of the unacceptable. I have spent a lot of time with teams in the last week talking positively about things and I think it is time to recognise some of the less positive aspects of what we do.

I think it is unacceptable at this point in time to not know the true cost of a service and the real exit costs from those services; the costs commercially, technically and from a business de-integration standpoint – so how do we untangle our way out of a particular product or service? I cannot tell you how many times I have had the discussion that says: we need to get away from that but we cannot because of the complexity of getting out from where we are: all the things hanging on to that particular service that we cannot disentangle ourself from.

I think it is completely unacceptable at this point in time to enter into any contracts for more than 12 months. I cannot see how we can sit in a world of IT and acknowledge the arrival of the iPad in the last two years and yet somehow imagine we can predict what we are going to need to be doing in two to three, or five or seven or 10 years time. It is a complete nonsense.

And to those who say ‘what about a supplier upfront infrastructure: surely you have to fund that somehow?’ I would say: ‘why do we have to treat IT and particularly commodity IT any differently from any other commodity
around?’

Marks and Spencer does not come knocking on the door asking me to guarantee to buy three suits and two shirts a year for the next five years and then they will put a store at the bottom of the road… if you look at a small local garage that has to fund its hydraulic ramps and the computer equipment they now need. They do not ask people to fund that upfront. They go into the market confident of their products and confident of their pricing so they will get people back again and arrange for how that gets funding…

I think it is unacceptable not to know in government how many staff we have on the client side of IT. I have not yet met anybody who knows what that figure is. People know about small areas but overall we don’t know what that figure is. It is also unacceptable that we don’t know what those people do. So we don’t have any idea of the breakdown of that number that we don’t know either,  surprisingly. I think that is outrageous in this climate, and in any climate.

It is completely unacceptable we don’t know what systems we own and how much they cost; and how much or even if they’re used. I know there are organisations that have turned off tens of thousands of desktop services merely to discover if they are used anymore; and when they do that they discover maybe one per cent are still being used…

It is unacceptable not to know when users give up on an online service; and it’s unacceptable not to know why they give up. Of course it is unacceptable that they have to give up because the service does not fulfil their needs.

It unacceptable to have a successful online service that sends out reminders to use that service through the post…. Linked to that, it’s completely unacceptable not to be able to communicate with customers securely electronically when technology clearly allows that to happen.

It is unacceptable not to be able to do our work from any device we choose. That is possible and has been for some time.  It’s outrageous we cannot do that.

It is unacceptable to pay – and these figures are Public Accounts Committee figures – up to £3,500 per person per year for a desktop service.

It is unacceptable for your corporate desktop to take 10 minutes to boot and the same amount of time to close down. But that is the truth of what goes on everyday in Government IT and I suspect the public sector too.

It is unacceptable for staff to be unable to access Twitter or YouTube, when they use those services for what they do.

It is unacceptable for call centre staff not to be able to access the very service they are supporting at the call centre. It sounds funny but when you think of the consequences of that it is truly dreadful.

I think it is unacceptable in this day and age to ensure people are working by restricting their access to the Internet. If we cannot measure people by outputs where on earth are we?

It is unacceptable that 80% of Government IT is controlled  by five corporations.

It is unacceptable that some organisations outsource their IT strategy in Government.

It is unacceptable that to change one line of code in one application can cost up to £50,000.

It is unacceptable to wait 12 weeks to get a server commissioned for use. That’s pretty commonplace. When you think in terms of using a service like Amazon the most problematic thing on the critical path is the time it takes you to get your credit card out of your wallet and enter the details on screen.

Above all – and at the heart of a lot of this – it is unacceptable not to engage directly with the most agile forward-thinking suppliers that are in the SME market today and are not among the suppliers we have been using.

So things have changed and we haven’t is what has happened.

A lot of these things could have been explained away five or 10 years ago but I
don’t think they could have been explained away adequately in the last three years, probably at least.

So how does G-cloud help in all of this? I think G-Cloud is about a fundamental change in the way Government and I believe the public sector too does technology. It is not just about cloud computing. It requires a complete change of approach. A cultural change of approach. A change in the way we look at security; a change in the way we look at service management and above all change in the way we procure services we use. So cloud will be cheaper…

Using cloud solutions that have already been secured and accredited
will be cheaper almost always.  We will only pay for what we use. People will only use DR when they use DR.

Over time through the G-Cloud programme, products will be pre-procured and security accredited. They won’t be accredited by the programme itself but by the first users of this, so we don’t have to replicate that work time and time again because that is what a lot of our staff are doing. A lot of the tens of thousands of staff that are working on the client side of government and public sector IT are procuring the same things, accrediting the same things from a security perspective; and it is a complete and utter waste of time and huge money.

You’ll know from the outset the cost of the product and most importantly we will know the cost of exit. Nuclear power looked really cheap all the time somebody chose to ignore de-commissioning of nuclear power stations, and then it became a very different model.

Contracts will be under a year I believe… I don’t believe aggregated demand and long-term contracts bring value for money. Quite the reverse…  why anybody would offer somebody a contract  which meant we could carry on paying them money almost regardless of the service we got, with no meaningful incentive for better performance? That can all change. When we have the ability, through understanding exit and understanding the cost and performance of things, to move out of one product and into another in short order, I guarantee that the price will come down …

… Costs [of streaming] used to be outrageous and the quality was poor until the BBC put together standards on the way it’s done and the BBC can now buy services on daily basis and the cost has dropped by an order of magnitude and the quality is much improved. They know –  the service providers – that tomorrow somebody can go somewhere else. If Marks and Spencer does not provide clothes at the right price and quality people will go down the road and buy somewhere else. It is that, that drives quality and price, not a long-term contract.

[When people see that] products have clear pricing, clear details of what they do, clear details of what exiting that product is going to be like, and it says: ‘Andy Nelson at the Ministry of Justice has used this product over the last year and this is what he says about of it’, that starts to transform what happens on price and quality far and away above anything that any SLA can or ever has given us. So we won’t get ourselves locked in in any way. Not from a commercial or technical perspective. Many products nowadays are designed to get their little feelers locked into every part of your system….

Our staff over time will become skilled system integrators. That’s what will happen in the short term…

We will see people setting up services in minutes instead of years. How?

We have Foundation Delivery Partners – they are departments, local authorities, organisations that come together with others that are looking
to buy cloud products. The FDPs work with a bunch of people from the government procurement service who handle the commercial aspects; they work with staff from CESG to work out security implications and product by product they have begun to break down what it is they need to do, so subsequently that work does not need to be redone.

Over time we will have a model that describes lots of different circumstances of use of products so we will know – the senior risk information officer – will know what has been covered off already and will see the accreditation that has gone on and will know they will only have to fine tune that for the last bit of use in their department. That will dramatically reduce over time the amount of effort that goes into that security.

Large-scale IL3 email is coming soon; and large-scale IL3 collaboration
opportunities…

[The Government Digital Service is off] corporate systems to a solution that is IL0 and IL1 and 2, with IL3 on a few machines to one side. [There are] savings of 82% over adopting the corporate systems. People don’t wait 10 minutes for machines to boot up and shut down.

We don’t have all the answers… Great quality IT centres around an iterative process that gets stuff out and we learn quickly from what users do with it and is improved and improved.  I don’t recall a press release saying Google will update its apps products on 8 May next year. What happens is you notice a little banner saying we have done it differently: do you want to try it? How many times have you seen improvements on eBay and just experienced them as they arrived?

They are intuitive and what people want and they just happen… [Published in last few minutes] is a new cloud framework that is designed specifically to get SMEs across the threshold and working directly with departments, agencies, local authorities, police and health. There is a user guide. It is a key product.

We will watch very carefully how this gets used, and the impact on SMEs. I don’t anticipate any large organisations having difficulty with this. But the target is to get us engaged with SMEs.

We will watch what their problems are and we will correct that as we go. We are already working on the second version of this which will be due out, hopefully, early in the new year. With brilliant support from John Collington in the Government Procurement Service we will be adding new suppliers on a month by month basis which will dramatically change things and really gives us the flexibility we need.

The second manifestation of how serious we are in the cloud is a document to be published tomorrow which will give a very serious indication of intent around the use of cloud…”

Chris Chant’s talk – audio file Government Digital Service

Jobs on offer – Government in need of “digital” talent

By Tony Collins

Some parts of government may be shrinking but there’s jobs on offer in the Government Digital Service.

Mike Bracken, the Cabinet Office’s Executive Director for Digital, says the Government is “badly in need of the talent to engineer ourselves out of our torpor”.

“We are hiring”, he says. His team have jobs in development, product management, interaction design, web ops, technology architecture and digital engagement.  Salaries are between £59k and £90k.

Says Bracken: “Over the last 15 years or more, across Government we have engineered digital products and services using risk aversion and long-term programme management as our guiding principles.

“Now that it is clear that rapid, user-led development using open source technologies, agile approaches to delivery and cloud-based infrastructure is the order of the day, we find ourselves badly in need of the talent to engineer ourselves out of our torpor.

“In short, with long-term contracts giving programme managers and departments only one lever to pull in order to change or create digital services, it’s never been more important that there is a choice within Government.

“While there have been a few raised eyebrows at hiring in these straitened times, let me be clear that we need digital talent all across Government. In policy, legal, procurement and service delivery, deep digital experience in Government is scarce.

“So I would recommend that we see this drive not just a one-off recruitment campaign for GDS, but the start of the digital transformation of all Government services. As well as hiring, I spend large amounts of my time looking to help transform existing people and processes.

Bracken was appointed the Government’s new Executive Director for Digital on 5 July 2011.

Government Digital Service