Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Acknowledged
Departments struggle securing sufficient resource funding for ongoing digital system maintenance and updates.
Conclusion
Departments find it easier to secure capital funding for new developments than ongoing resource funding to maintain systems and keep them up to date.59 Moving services to cloud-based providers introduces new pricing models with an increasing emphasis on ‘pay-as-you-go’, which transfers traditional capital requirements to resource expenditure.60 Limiting resource expenditure means that departments can struggle to maintain services adequately once they have been built, and this can be a false economy. Cuts to maintenance budgets can have a devastating impact on the ability to maintain services in the longer term and risk undoing all progress on legacy systems.61
Government Response Summary
The government agrees with the committee's observation on resource funding challenges. CDDO is engaging with HM Treasury and other functions to discuss these issues and plans to gather information on their strategies for digital reform.
Government Response
Acknowledged
HM Government
Acknowledged
5.1 The government agrees with the Committee’s recommendation. Target implementation date: February 2024 5.2 CDDO has an overall milestone that the barriers to digital transformation will be addressed by 2025. However, it recognises this is dependent on other parts of government, such as HM Treasury, the Commercial Function and the Infrastructure and Projects Authority (IPA). Digital change involves levels of complexity, uncertainty and risk which are often unique to each specific programme due to legacy systems, existing ways of operation and the difficulties of integrating something new. 5.3 These differences should be reflected in business cases, funding and approvals processes, procurement of technology, audit and project review assurance and policy development. CDDO is regularly engaging with the Commercial and Operational Delivery Functions to discuss these challenges and options to address, as well as with HM Treasury. 5.4 This year (2023), CDDO plans to ask functions to share information on their current strategy and plans to achieve digital reform.