DC09 – 356 November 5, 2009
UK public sector yet to see full impact of recession
The UK Public Sector expects a difficult few years according to research from BT Global Services. A survey of board level executives from large organisations found that compared against five other sectors (Financial Services, Transport, Logistics, FMCG and Retail), the prospect of widespread cuts means public sector executives are the most pessimistic about an upturn in the coming year; a stark contrast to their private sector counterparts.
The research reveals that many believe the public sector is yet to face the full impact of the recession. A quarter of private sector respondents felt their department had not been affected at all by the recession and 4 in 10 of the public sector executives surveyed had seen no impact. Almost a third (31 per cent) felt that their department did not do anything out of the usual in order to cope with recession.
While their experience of the downturn may have been limited, nearly half (49 per cent) of public sector respondents feel their outlook is uncertain or gloomy compared to 36 per cent of other respondents from the private sector. Over three quarters (78 per cent) of the public sector suspect the expected recovery will falter, compared to just 31 per cent of private sector organisations.
Compared to their private sector counterparts, public sector executives have yet to see a fundamental change to the way their departments will operate over the next few years, signalling that public bodies have yet to experience the full effect that budget cuts will bring. Almost a third of the public sector respondents have seen business continue as normal, this figure falls to a fifth in the private sector.
When asked if their organisations were more focused on efficiency as a result of the recession, more than half (54 per cent) of public sector respondents agreed they were. However, few are making use of the technology that can help them create more efficiencies. Nearly half (45 per cent) of public sector respondents report that their department is not investing in these technologies.
A clear priority for those investing in technology was the need for faster or more reliable network technology, with 41 per cent indicating that this was an area of focus. Ten per cent questioned are investing in Tele/Video conferencing devices, and six per cent in cloud computing or software as a service applications and developments.
John Stokoe CB CBE, Vice President, National Government, BT Global Services, said: "Efficiency is the new byword for public sector departments with many expected to do more with fewer resources and create cost savings as a result.
“Rather than slicing budgets, the public sector needs to seize the opportunities provided by the smart and targeted use of technology, focusing on areas such as improved citizen communication, better collaboration through unified communications, and improved contact centre efficiency practices. By leveraging new technologies in voice, videoconferencing and cloud computing, public sector departments can reduce the impact of the recession and provide a good service to citizens without the need for additional capital expenditure."
The research, carried out by Vanson Bourne on behalf of BT Global Services in August and September 2009 was based on a survey of 300 board-level executives from large companies.
