Press Release - Purchasing and Managing Software Licences
1 May 2003
The Office of Government Commerce has done well to negotiate
software licensing agreements with IT suppliers that has secured
savings for the taxpayer, Sir John Bourn, the Head of the National
Audit Office, reported today. However, it needs to publicise the
benefits of the agreement more widely.
Software is vital for delivering services to the public. Last
year departments spent £610 million on software of which £100
million was spent on over one million software licences.
Almost all departments (95%) have purchased Microsoft software
licences. There are different ways of purchasing licences and
departments need to consider the costs of different options
available to them.
Departments have been slower to take up the terms of the OGCs
new agreements than it expected. Of the 66 departments which we
surveyed, 10 departments estimated that they would save some £5.4
million by using the agreements. Others are waiting for their
existing agreements to come to an end before they sign up. OGC
should monitor take up and, if departments are not using their
agreements, find out why and work out how to overcome any
obstacles.
Sir John also recommends that individual departments maintain
reliable information on their licences and regularly check that no
unlicenced software is being used. Departments should also consider
the total cost of ownership when purchasing major upgrades or new
systems; such costs involve installing the system, retesting,
resolving problems and training users.
Sir John Bourn said today:
"Whatever a department does, whether it is processing
benefit payments or protecting the public from crime, it uses
computer software. Delivering good quality public services now
depends on having the right IT. This report shows that many
departments are being intelligent customers when it comes to
software licensing. But it remains important that they have all the
information that they need to make the right
decisions."
Notes for Editors
- Press notices and reports are available from the date of
publication on the NAO website at http://www.nao.org.uk/ Hard copies can
be obtained from The Stationery Office on 0845 702 3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 800 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 36/03
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