- Info
Findings
Highlights of findings
-
Agencies reported spending $24.7 million more. Agencies that reported increases attributed these to the Christchurch earthquakes and one-time costs for change and improvement, including capital investment, transformation projects, and preparation for outsourcing ICT.
-
While some agencies reported efficiency gains, there are opportunities for improvement. Overall, NZagencies reported spending a significantly higher amount on ICT as a percentage of organisational running costs (ORC) than international benchmarks. There is an opportunity for $130.2 million in gross savings each year if all agencies reduced their cost of infrastructure as a percentage of ORC to their cohort median.[30] There also appear to be opportunities for greater efficiency by reducing spending and effort on applications development, implementation, and maintenance and by having a less complex ICT environment.
-
ICT effectiveness results show that NZ agencies are effective at supporting systems. The median time to resolve a service commitment disruption and the mean ICT MPI score are similar to international comparators.[31] Reported system reliability remains high and reflects performance for the top five systems per agency.
- While the ICT metric set provides useful information to individual agencies, more and different management information is required to inform government-wide strategies and decisions. The OGCIO and the Treasury are exploring options for more detailed ICT management information to support government-wide strategies and decisions by the ICT Strategy Group, ICT Council, and Government Enterprise Architecture Group.
Notes
-
[30]The 31 agencies (full NZ cohort) that participated in this exercise have, for the purposes of comparison, been categorised into three cohorts - 'small agency cohort' refers to agencies with <500 FTEs and/or ORC of <$95 million; 'medium-sized agency cohort' refers to agencies with 500 to 2,500 FTEs and/or ORC of $95 million to $300 million; and 'large agency cohort' refers to agencies with >2,500 FTEs and/or ORC of >$300 million.
-
[31]Management Practice Indicators (MPI) are adopted from the UK Audit Agencies A&S service performance measurement methodology. Within that methodology, the MPI score assesses "the extent to which...[a] function achieves a set of key management practices which will provide an indication of whether it is a well-run, modernised and mature function. Details are found in Appendix 4.
Page top
