Major cost increases and delays in central government IT projects

The Swedish National Audit Office has examined central government agencies’ work on strategic digitalisation projects. This audit covers 1,094 projects at 136 central government agencies in 2013–2024, with a total budget of SEK 40 billion.

The overall conclusion is that there are several inefficiencies. The most obvious inefficiency is that almost half of the projects are characterised by major delays and cost increases. In addition, about five per cent of the projects were discontinued without delivering any results. Costs for these projects amounted to SEK 1.6 billion.

The audit also shows that the achievement of the objectives among projects performed is difficult to assess, as most government agencies do not have any systematic method for evaluating the benefits of the projects. Shortcomings in evaluations make it difficult to determine whether the resources allocated have led to intended improvements and efficiency improvements in central government activities.

The problems of budget overruns and delays are persistent and occur at most government agencies, regardless of budget size or type of project, although they are particularly prominent at government agencies with essential services and in large projects.

“The main reasons for these problems are deficiencies in project planning, project management, skills supply and requirements. In addition to a negative impact on their own operations, it impedes central government digitalisation,” says Auditor General Christina Gellerbrant Hagberg.

Prolonged or unsuccessful procurements is another important reason. At the same time, there is no comprehensive support for procurement of IT. Government agencies also often make a departure from the Legal, Financial and Administrative Services Agency’s framework agreement and it is difficult to assess whether these departures are justified.

A skills shortage is a common obstacle to the government agencies’ digitalisation projects. In some cases, this has led to unforeseen needs for consulting contracts, which has resulted in increased costs and delays.

“Government agencies’ work on IT skills supply has not been sufficient proactive; only a fraction of those we have examined have a strategic plan for this,” says Yuwei de Gosson de Varennes, project leader for the audit.

The government agencies have had low collaboration in their digitalisation projects, despite the fact that there is experience from similar projects. The Swedish National Audit Office assesses that there is a risk of unnecessary duplication of work and an inefficient use of resources.

With regard to the Government’s work, the Swedish National Audit Office notes that the objectives of digitalisation policy are ambitious but that there are no monitorable targets for the government agencies’ work. Furthermore, the Government has not systematically followed up the digitalisation efforts.

“Our assessment is that the Government’s control of the digitalisation efforts is weak. The central government does not have a comprehensive picture of the achievement of the objectives and what changes are required,” says Auditor General Christina Gellerbrant Hagberg.