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SOCITM is concerned that compulsory competitive tendering (CCT) rules may be prejudiced against Britain's smaller district councils. It contends that while many larger authorities are in a good position to meet the CCT challenge, a good number of smaller ones will have to bear the added burden of higher costs once the rules are imposed. This is because the government does not expect smaller councils to tender since their spending on information technology is smaller. In reality, however, these councils will be compelled to tender by trends in the local government.

Local governments outsourcing their IT services can effect a trouble-free and effective changeover by allowing staff assistance into the IT-vendor evaluation activity. This enables the staff to evaluate their position with regards to the IT outsourcing process and its implications on their jobs, job security and career prospects. Staff assistance in the evaluation process could also facilitate the identification of specific performance parameters to specify the outsourcing service.

The growing demand for information technology (IT) services has made local authorities to strengthen efforts to retain their IT staff. Maintenance of IT service is essential to local government services but is difficult to sustain for a longer period of time because of staff turnover rates at low levels. Given the situation, local authorities focus on outsourcing, writing specifications, advertisements and tender evaluation plans.

UK local government officials are bemoaning the delay in the implementation of customer-care technology (CCT) while the Labor Party reconsiders its stand on information technology. Labor leader Tony Blair is expected to usher in a return to external auditing instead of relying on information technology, but public auditors have expressed their support for CCT.

The near completion of the CCT plan for the outsourcing of information services and financial services has brought out many inter-related issues concerning its implementation by local governments. These pertain to rules about the packaging, specification and letting of contracts. Authorities may 'let contracts as a joint service package' but this will limit competition to companies which are able to offer information processing and financial services only.

The SOCITM IT Trends survey showed that local authorities spent less on information technology (IT) from 1993 to 1994. The Audit Commission may have promoted IT, but has only addressed headline costs. The commission's study on the UK government's IT spending focused on the costs of providing IT instead of emphasizing the benefits that IT has to offer. The more progressive managers in the business sector are already using IT to improve their activities. However, the public sector has yet to improve its efforts in adopting IT.

The UK government has released its proposals for the use of combined council tax (CCT) contracts in local government financial services and information technology departments. The proposals were jointly drafted by local government bodies, the Audit Commission, the Computer Services Assn. and several companies in the financial services and computer software industries. Under the government's proposals, the new CCT regime would be implemented a year after programs for general admnistration, personnel management and financial management are completed.

UK's compulsory competitive tendering regulations are to be implemented in such a way that no current service levels of such entities as environmental, health and information technology departments are disrupted. The timetable for the introduction of the procedures needs to be carefully set up. Local councils need to be vested with some degree of responsibility in deciding contract packaging and the specification of technical aspects.

The use of compulsory competitive tendering will have deleterious effects for small businesses operators as larger companies attempt to control the market and exclude small suppliers of software services and hardware. The UK is considering a proposal that will outline provisions for information technology outsourcing. Under this proposal, authorities with employee numbers less than specified threshold numbers will not be forced to propose specific amounts of work.

The regulations of information systems/information technology (IS/IT) compulsory competitive tendering may cover more people than anticipated by authorities. Despite the difficulty of effectively defining IS/IT activity due to the increased use of computing and other factors, the selection of a cut-off point may cause the regulations to apply to more enthusiasts and professionals.