How to fix public IT projects?
The state prepares dozens of IT projects annually. The added value of those evaluated by VfM since 2016 falls short of expectations. The challenge for improving results is not primarily a lack of financial resources, but the establishment of clear long-term priorities and better preparation already in the initial stages.
The state invests heavily in digitalization, but the added value often lags behind. Analysts from UHP evaluate dozens of IT projects every year and see that for every euro spent, there usually comes only 1 to 2 euros in benefits. The problem is not the technologies, but how we define, prepare, and manage projects. UHP annually assesses approximately 80 government IT projects and focuses on their value, not just the technical solutions. Benefits include financial savings as well as higher efficiency of officials and clients – citizens or businesses. Despite the belief in the enormous potential of digitalization, two out of three projects deliver only 1 to 2 euros of benefits per 1 euro of costs. The UK often uses a 2:1 ratio as a lower bound for discussion; similar ratios are typical even for transport infrastructure, whose benefits have natural limits.What the data say about the benefits of government IT projects
