{"id":194564,"date":"2025-10-07T05:21:12","date_gmt":"2025-10-07T05:21:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/194564\/"},"modified":"2025-10-07T05:21:12","modified_gmt":"2025-10-07T05:21:12","slug":"it-costs-expected-to-rise-for-the-states-next-year","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/194564\/","title":{"rendered":"IT costs expected to rise for the States next year"},"content":{"rendered":"<p textalign=\"left\">Policy &amp; Resources claimed the new model involving numerous suppliers had been working well since it was adopted on 1 August, but it was proving more expensive to operate, at least for now. <\/p>\n<p textalign=\"left\">\u2018The level of IT change has resulted in an overspend in the year to date. However, the current forecast is that the expenditure by the end of the year will be in line with budget,\u2019 said P&amp;R vice-president Gavin St Pier.<\/p>\n<p textalign=\"left\">\u2018The improvements needed as part of the transition have resulted in more or new cost in some areas which are mitigated by savings elsewhere. <\/p>\n<p textalign=\"left\">\u2018However, there will be a net increase in cost for the 2026 budget.\u2019<\/p>\n<p textalign=\"left\">In 2019 the States agreed to sign a \u00a3200m. contract with Agilisys to provide the States with IT services for a period of 10 years. <\/p>\n<p textalign=\"left\">Performance concerns led to the contract being terminated by P&amp;R not long after this year\u2019s general election.<\/p>\n<p textalign=\"left\">Deputy St Pier provided an update on IT services during a statement to the Assembly on work falling under his new treasury and resources brief.<\/p>\n<p textalign=\"left\">\u2018A transformation of this scale represents a significant undertaking for any organisation,\u2019 he said.<\/p>\n<p textalign=\"left\">\u2018Thus far we are encouraged by the new model\u2019s initial performance, including in our more complex service areas such as schools and healthcare settings.<\/p>\n<p textalign=\"left\">\u2018It is necessary to stress that there remain underlying challenges. <\/p>\n<p textalign=\"left\">\u2018Addressing these will require yet more investment and we will continue to review service performance to ensure our IT services are resilient, cost-effective and fit for purpose.\u2019<\/p>\n<p textalign=\"left\">He thanked States IT staff and suppliers for their \u2018diligence and hard work\u2019 during the first couple of months of the new model.<\/p>\n<p textalign=\"left\">Commercial reasons prevented Deputy St Pier from sharing more information publicly, but he assured the States that \u2018at the appropriate time\u2019 P&amp;R would provide more details about why the contract with Agilisys was terminated, the approach taken to move to the new model and the costs involved.<\/p>\n<p textalign=\"left\">\u2018This transition wasn\u2019t change for the sake of change but a necessary operational response to performance issues with the previous contract,\u2019 he said. <\/p>\n<p textalign=\"left\">\u2018It is hoped that a multi-vendor model will be more flexible than one with a sole provider and will help to better ensure the security and resilience of the States\u2019 IT estate.\u2019<\/p>\n<p textalign=\"left\">Corporate services, which includes IT and for which P&amp;R is responsible, was one of two divisions of the States currently forecasting an overspend this year.<\/p>\n<p textalign=\"left\">It is now expected to end 2025 \u00a31.6m. in the red. <\/p>\n<p textalign=\"left\">Higher IT and insurance costs have been cited as the reason.<\/p>\n<p textalign=\"left\">\u2018Insurance policies have suffered above- inflation increases to the cost of insuring States assets and service delivery,\u2019 said Deputy St Pier.<\/p>\n<p textalign=\"left\">\u2018We have initiated a fresh look at our insurance provision and whether there are better solutions available.\u2019<\/p>\n","protected":false},"excerpt":{"rendered":"Policy &amp; Resources claimed the new model involving numerous suppliers had been working well since it was adopted&hellip;\n","protected":false},"author":2,"featured_media":194565,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":["post-194564","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/194564","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=194564"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/194564\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/194565"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=194564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=194564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=194564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}