Lithuania's Centralized IT Services Project Under Scrutiny: Auditor General Raises Concerns

Strategic Insights -

A recent state audit "Consolidation of the State Information Resources Infrastructure" conducted in Lithuania has revealed that the centralized provision of IT services to the public sector is inefficient. The project, which has garnered 100 million euros in investments from the state budget and EU funding over the past decade, aims to reduce costs by providing services centrally. However, the audit results show that there is no evidence to support the benefits of this centralization, and some institutions are not using the services at all. Auditor General Irena Segaloviciene emphasizes the need for a clear assessment of the current and future benefits of the project, as EU funding will end in 2026 and the project may continue to rely solely on state budget financing.

Key Takeaways:

  • The centralized provision of IT services to the public sector in Lithuania is inefficient, with some institutions not using the services at all.
  • The planned financing model for centrally provided IT services was not implemented, resulting in uncalculated real volumes and prices of services.
  • The State Digital Solutions Agency did not provide 4 out of 18 assessed IT services in 2024, including database management system maintenance, printing services, and local area network maintenance, due to a lack of IT specialists.
  • Only 15 percent of 52 selected institutions used 5 out of 12 centrally provided IT services, with service recipients often purchasing IT services through public procurement or hiring their own IT specialists.
  • The project's technical capabilities, including computer maintenance, software, and workstation hardware services, were not fully utilized due to the lack of IT specialists at the State Digital Solutions Agency.
  • The National Audit Office recommends creating an effective IT services model, guaranteeing that all necessary services are provided and that institutions receive real benefits without experiencing additional administrative burden.

Statistics:

  • 100 million euros invested in the centralized project over the past decade (Source: State Audit of Lithuania).
  • Less than 15 percent of 52 selected institutions used 5 out of 12 centrally provided IT services (Source: State Audit of Lithuania).
  • 4 out of 18 assessed IT services not provided by the State Digital Solutions Agency in 2024 (Source: State Audit of Lithuania).
  • EU funding for the project will end in 2026 (Source: State Audit of Lithuania).

Sources:

  • "Consolidation of the State Information Resources Infrastructure" state audit, https://www.valstybeskontrole.lt/LT
  • Interview with Auditor General Irena Segaloviciene