Policy & 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.
‘The 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,’ said P&R vice-president Gavin St Pier.
‘The improvements needed as part of the transition have resulted in more or new cost in some areas which are mitigated by savings elsewhere.
‘However, there will be a net increase in cost for the 2026 budget.’
In 2019 the States agreed to sign a £200m. contract with Agilisys to provide the States with IT services for a period of 10 years.
Performance concerns led to the contract being terminated by P&R not long after this year’s general election.
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.
‘A transformation of this scale represents a significant undertaking for any organisation,’ he said.
‘Thus far we are encouraged by the new model’s initial performance, including in our more complex service areas such as schools and healthcare settings.
‘It is necessary to stress that there remain underlying challenges.
‘Addressing 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.’
He thanked States IT staff and suppliers for their ‘diligence and hard work’ during the first couple of months of the new model.
Commercial reasons prevented Deputy St Pier from sharing more information publicly, but he assured the States that ‘at the appropriate time’ P&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.
‘This transition wasn’t change for the sake of change but a necessary operational response to performance issues with the previous contract,’ he said.
‘It 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’ IT estate.’
Corporate services, which includes IT and for which P&R is responsible, was one of two divisions of the States currently forecasting an overspend this year.
It is now expected to end 2025 £1.6m. in the red.
Higher IT and insurance costs have been cited as the reason.
‘Insurance policies have suffered above- inflation increases to the cost of insuring States assets and service delivery,’ said Deputy St Pier.
‘We have initiated a fresh look at our insurance provision and whether there are better solutions available.’