European public services overspending on tech by £2.4 million

Unused software licenses cost European public service organisations an average of £2.4 million a year, research by Insight has revealed.

According to the global tech business, the inability for businesses to optimise IT costs has meant they have had to find savings elsewhere.

The Insight study also found that since March 2020, 52 per cent of businesses have downsized their workforce and nearly a quarter have downsized their IT department specifically.

66 per cent of businesses have a large amount of duplicate hardware and software because they needed new technology at the beginning of lockdown, while 68 per cent said they cannot scale their software licenses to the number of employees they have.

“Systemic challenges around cost management have been an issue for organisations for many years,” said Emma de Sousa, senior vice president, EMEA at Insight. “In the current environment, public sector organisations need to make cost savings. But equally they need to avoid decisions that could impact their capacity to execute digital transformation plans and deliver essential services. Focusing on cost optimisation could uncover opportunities to save money without harming the organisation’s ability to operate effectively.”

According to the research, 69 per cent of organisations surveyed have not consolidated their IT infrastructure since March 2020, while 74 per cent are using multiple applications that have the same functionality but are used by different teams in different situations.

A further 61 per cent have multiple contracts for the same software because it was bought by different departments at different times, while 87 per expect software vendors to increase licensing audits in the wake of COVID-19.

“The challenges of 2020 will continue into 2021, and IT departments will have a key role in helping organisations face them,” continued Emma de Sousa. “Eradicating waste and driving more efficient operations will put organisations in a better place to ensure they are resilient enough to continue delivering services, whatever the future brings. Cost optimisation isn’t easy, and often requires specialist skills and knowledge, but investing in optimisation now will provide immediate financial returns.”

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