Saturday 12 February 2011

IT Costs - £2 million spent with Logica CMG

Reviewing the October to December supplier payments I notice that during this three month period LogicaCMG UK Ltd have been paid just over £1.2m (£302,558 on consultancy fees,£12,689 on IT Services, £19,000 on software purchases and £867,672.02 on software licenses and support). Looking back through the previous supplier payments it appears that they were paid £52,470.93 in the period July-September and £791,744.98 in the period April-June. In total, for the first nine months of the financial year that comes to the princely sum of £2,046,134.93. Just what are Logica doing at Barnet that is so expensive and why aren't councillors at least asking the question.

I suppose this makes the £150,625 replacing the air conditioning units in the data centre at NLBP seem quite modest by comparison. I know that a decent IT system can be essential tool for running a successful business but staying solvent also helps. Given budget pressures we face are we absolutely sure this cost could not be reduced?

3 comments:

  1. The planned IT spend in the business plan for next year is £7 million. That is more than the library budget (at a tad over £6 million)

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  2. what, exactly, is provided for the consultancy payments,and as you say, why are these charges so high? Is the consultancy rate incremental or a one off? Who scrutinises these charges?

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  3. Mrs Angry,

    In answer to your question "who scrutinises these charges?" Sadly it seems that the answer is "Mr Reasonable and a few other bloggers".

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