Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Accepted
Defra lacks comprehensive data on the full operational costs of using legacy IT systems.
Conclusion
As part of its review of legacy applications, Defra told us it had decommissioned over 30 IT systems because more modern alternatives were available. It explained that this had improved its internal efficiency and created cost savings. Defra estimated that it needs to spend £726 million on modernising legacy services between 2021 and 2025. Defra told us that it considered that there was scope for saving £20–25 million per year if 42 Qq 50–51; Central Digital and Data Office, Transforming for a digital future: 2022 to 2025 roadmap for digital and data, 9 June 2022 43 Q 49 44 Qq 49, 76 45 Q 48, C&AG’s Report, para 1.19 46 Q 48; C&AG’s Report, paras 2.8, 2.15 47 Qq 48, 51, 56–57 48 Q 51 16 Tackling Defra’s ageing digital services it modernised all its IT.49 However, Defra did not record the additional costs of continuing to use legacy services such as manual processes, where outdated technology added to the cost of operating services. For example, it could not tell us how many additional people it employed because of the legacy systems it used.50 Collaboration across government – the role of the Central Data & Digital Office (CDDO)
Government Response Summary
The government agrees and Defra commits to conducting an analysis of its service landscape, aiming to include efficiency savings achievable through modernising systems and processes, and will inform the Committee of its findings and planned actions by September 2024.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Target implementation date: September 2024. Defra is fully supportive of the government’s 2025 roadmap Transforming for a Digital Future, which was deliberately designed to be deliverable within Spending Review settlements. CDDO undertook analysis of funded projects and potential costs and used these to set informed targets, in order to work within departmental budgets. CDDO recognises that the economic environment remains uncertain and highly challenging, putting additional pressures on departmental budgets that weren’t there when the roadmap was published. CDDO intends to publish a 1-year update outlining progress across government and providing greater clarity on delivery plans for year 2 and year 3. Following this, CDDO will support departments to prioritise effort in the areas most needed and where necessary, will flag any long-term delivery concerns as a result of tightened budgets. As part of this process, Defra will conduct an analysis of its own service landscape, including supporting technologies, to determine priority areas for investment ahead of SR24 bidding. As far as possible, this will include efficiency savings that could be achieved through modernising its systems and processes. Defra will write to the Committee within a year of the analysis finishing to advise on the conclusions drawn and actions being planned as a result.