Laura Sharman 29 January 2014

Councils paying over the odds for IT equipment, survey finds

Councils paying over the odds for IT equipment, survey finds image

Councils are paying more than three times the industry standard for IT equipment, according to a new benchmarking survey.

The survey, from Mercato Solutions, found that the average margin on purchases by councils was 12%, compared to the recommended margin of 3%. The largest margin for a single IT purchase was 327%.

However, there has been some improvement since last year, when local authorities were paying 29% higher.

Mercato’s head of benchmarking, Al Nagar, said: ‘The latest results show that councils have clearly taken significant steps to halve the margins they pay to secure better value on IT product purchases. However, in a sector of public scrutiny where every penny counts, margins of 12% are still well adrift of 3% best practice.

‘Without validated comparative data, buyers are struggling to achieve a 3% margin. Data is the key and with access to up-to-date information, procurers can gather the knowledge they need to negotiate better deals with IT suppliers and get more from their IT budgets in 2014.’

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