Majority of States IT consultant spending goes to non-Jersey firms

Thursday 21 April 2016

Most States’ IT consultant spending is now going to firms from outside of Jersey, the Chief Minister’s department has confirmed.

Up until 2012 - the year that the States launched Digital Jersey as an agency to nurture the Island's tech sector - the majority of IT work was farmed out to companies in the Island, but since then the public sector has been increasingly looking to UK firms for IT and tech support.

Last year saw the lowest spend with Jersey firms for the last five years.

The figures were revealed in response to a Freedom of Information Law request by Bailiwick Express, following the States’ decision to award the major eGov contract, worth £1.2 million, to the one UK firm that tendered for the job, overlooking the Jersey firms who went in for the work.

The stats show the following breakdown in terms of IT consultant spending going to companies in Jersey and overseas:

2011: Jersey firms £778,284 (55%); overseas firms £636,026 (45%).

2012: Jersey firms £1,060,207 (52%); overseas firms £980,992 (48%).

2013: Jersey firms £1,045,168 (45%); overseas firms £1,247,006 (55%).

2014: Jersey firms £634,886 (37%); overseas firms £1,078,136 (63%).

2015: Jersey firms £620,866 (37%); overseas firms £1,027,542 (63%).

The figures cover: contracts for technical systems analysis; IT management; technical architecture; project, programme and delivery management; software development; and IT support.

When the announcement about the key “design authority” contract for the States eGov project was made in February, local tech firms were angry that they had been looked over in favour of a UK firm, particularly at a time when politicians are talking about the potential to create a new digital sector in the Island.

Two key States policy documents – the States Strategic Plan and the Jersey Innovation Review – appear to place a premium on giving local talent the opportunity to take on key projects in the digital sphere.

The Strategic Plan included a line that the government would: “Develop a plan to promote additional jobs and growth in the Technology sector, with a particular focus on Fintech.”

The Innovation Review, completed by economist Tera Allas, included a specific recommendation to reform public sector procurement to reward local innovation.

The recommendation stated: “Government should review and, where appropriate, reform government procurement guidelines and practice to reduce bureaucracy, increase transparency, and reward innovation (i.e., value as opposed to just low cost), and publish statistics on government procurement by size and age of company.”