1 / 13

IT Spending R eview – Expert Mission Kick Off

IT Spending R eview – Expert Mission Kick Off. Bratislava June 2, 2016. Slovak Spending Review: Primer. Part of government’s larger value for money initiative Review most of public expenditures over the electoral term ( VfM : also policies and regulations)

hei
Download Presentation

IT Spending R eview – Expert Mission Kick Off

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. IT SpendingReview –Expert Mission Kick Off BratislavaJune 2, 2016

  2. Slovak Spending Review: Primer • Part of government’s larger value for money initiative • Review most of public expenditures over the electoral term (VfM: also policies and regulations) • As part of the standard budgeting process with results locked in • Driven by the Ministry of Finance with other line ministries carrying out the assessments – especially analytical units • Three reviews currently underway – • Transport • Health • IT www.finance.gov.sk/ifp

  3. IT Spending Review: Value Creating Exercise • Terms of reference outlined in the Stability program • Provide better value for money • Expected delivery: • over 3 years • CAPEX - Digital public services on the average of EU28 (DESI5a) • OPEX - “On par with commercial services” • estimated savings of 10%, 20%, 30% both in CAPEX and OPEX • First observations coming out shortly www.finance.gov.sk/ifp

  4. What we learned very early • Virtually no analytical IT data • only high level spending data (accounting) • no performance / project data • Fragmented ownership with lack of coordination & enforcement • Unclear investment pipeline and priorities www.finance.gov.sk/ifp

  5. Terms of Reference and General Approach Area Approach Performance Goals (2019) Fiscal Goals CAPEX • Decrease the SK – EU28 DESI lag • Digital public services on the average of EU28 (DESI5a) • Improved investment governance • Better and cheaper projects (CBAs) 2017: 10% savings over the NPC2018: 20% savings over the NPC2019: 30% savings over the NPC OPEX • “On par with commercial services” • Internal & external benchmarking www.finance.gov.sk/ifp

  6. Outputs: Slovak Digital Services are lagging behind the EU as well as countries falling behind (public facing) Source: European Commission; DESI 2015

  7. Outputs: Countries have shown significant YoY improvement. Launch of slovensko.sk not captured yet. www.finance.gov.sk/ifp

  8. Inputs: Historically, IT costs roughly 500 mil. eur year, OPEX contributes 40%, CAPEX 60% of IT costs. HR costs unavailable. www.finance.gov.sk/ifp

  9. Inputs: withEU funds contributing roughly 40 percent www.finance.gov.sk/ifp

  10. Inputs: The EU funds share is larger in capital investment. www.finance.gov.sk/ifp

  11. Inputs: 80 % of spending is concentrated in four ministries www.finance.gov.sk/ifp

  12. Inputs: Operational expenditure of three institution forms 66% of total expenditures, expenditures per employee are in the range of 800% www.finance.gov.sk/ifp

  13. Next steps: setting the shop, reviewing methodologies, making sure proper data gets collected Status Approach Area CAPEX • Reviewing investment governance • Reviewing CBA methodology • IT alignment • Better and cheaper projects (CBAs) OPEX • Reviewing data collection methodology • Identifying consolidation opportunities • Start collecting the data • Internal & external benchmarking www.finance.gov.sk/ifp

More Related