E-Commerce – Government losing out

Failure to adopt electronic commerce more widely is costing central and local government more than #4bn a year, according to a report published this week, writes Nick Huber.

The study, by market researcher Kable, comes at an embarrassing time for the government, as it follows its consultation paper on electronic commerce this week.

Kable estimates the government could save #3.7bn a year over the next five years if it paid more companies electronically.

Another #390m could be saved on the costs of procuring goods and services for internal use.

Kable managing director Mark Hudson questioned the government’s commitment to carry out 90% of routine procurement of goods by e-commerce by 2001.

‘It’s less than 10% at the moment,’ he said.

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