IT in the public sector in massive structural transformation
IT in the public sector is going through a structural transformation. Organizations are shifting towards a purchaser-provider model, and this will completely change the way IT is being provided in the public sector.
Standardization and centralization
Governments are struggling with the aging population, shrinking public budgets and the incapability to provide equal services for all citizens. This has increased demand for standardized and centralized services for all cities and communes, whereas before cities were completely free to choose solutions, providers and programs based on their own interests.
Privatization
As cities and communes are merging, new publicly owned enterprises are created that provide IT services to a large customer base. Before, IT operated based on a given budget. Now it needs to fund its operations based on income from provided services and compete with private IT service providers. These instances may be sold to private IT service providers.
Purchaser-provider model
IT transforms into a purchaser organization that is responsible for understanding the demands of their customers and governing IT service providers that sell their services to meet those demands. This organization should excel in defining the needs for IT services and arranging tenders to negotiate low prices for standard IT services.
These changes will have a massive impact in the public sector IT. Public sector doesn’t have enough resources to both maintain existing services and develop new ones at the moment. By creating centralized bodies that have a high volume, there will be more resources to both maintaining the standard services properly and investing into innovation.
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