Why do Governments Pay too much… for ict ?

WHY DO GOVERNMENTS PAY TOO MUCH… FOR ICT?

Carlyle RobertsRegional Head of Government Solutions

Pay More?

Why pay more – When you can pay less?

Roadmap

Common Myths

Challenges

Moving Forward

COMMON MYTHS& CHALLENGES

Top 5 Myths about Major ICT Projects1. If any part of it looks Local it MUST be

inferior2. What works half way around the world in a

completely different culture, with 100-times the population will also work the same here

3. The most popular brand will always provide the best solution for my problem

4. Once they give me a higher % discount, then it’s the lowest cost for the solution

5. The cost of the equipment is the cost of the solution

Truth?

Why Let the Truth get in the way of a Good Story?

Some Major Causes of Too Much Spend

Lack of Centralisation

• Centralisation can bring efficiencies

• Reduce costs• Bring more focus on

the process of getting things done

Operating in Silos

• Operating in Silos of Ministries, Departments and State organisations increases work required & costs

Not Leveraging Economies of Scale

• Using scale as a leverage to get more for less

• Standardising saves on support, maintenance & spares

Not Leveraging Bundled Services

• Bundling of services may allow reduced overall cost, as suppliers are willing to give bigger discounts for using more of their services

Not Using the Experience of Others

• Experiences whether good or bad can provide excellent lessons

• Reach out to counterparts across the region and beyond and find out what worked or didn’t work for them

Not Enough Focus on Environment

• What is the right environment for the solution?

• How will people & processes handle change?

• What else needs to happen for the project to be successful

Indecision

• Whatever the outcome, a decision needs to be made

• It oftens costs a lot more NOT to make a decision

What Should you DO?

MOVING FORWARD

A Few Things to Take-On

• Leverage everything at your disposal• Partner, Partner, Partner• Be open to creative & different models• Examine a mix of local strength with the

international experience• Implement quick low-scale pilots to first test

Plan First, Execute Fast

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