State pays too much to IT companies

Public institutions could shave 23% off the costs of external IT services, or €20m annually, if they pay the man-day rates recommended by the IT Ministry, Value for Money unit’s analysis shows. If the Slovak institutions pay Czech rates, the savings would climb to €30m. The unit therefore calls for putting price pressure on IT vendors. It also recommends building internal IT capacities, which Slovak institutions use to a significantly lower degree compared to other countries. Local IT firms point out that if Czech companies were indeed cheaper, they would bid in Slovak IT tenders and win them. Slovak IT tenders under previous governments, though, used to be won by well-connected firms able to bend procurement rules.

(HzP, dennikN.sk)