The government approved a major digital state reform last week. As part of the reform, the number of state IT houses will decrease from 10 to 6. About 10% of jobs will also be reduced.
Deputy Chancellor of Digital State Lauri Luht said the goal of the reform is to simplify the state's IT governance. We wanted to use more shared solutions, data, and artificial intelligence. This will make the state's digital services simpler and better.
The reform reduces duplication of the same tasks in multiple places. Now all institutions can use the same solutions. This saves time and money. Services will become better and more reliable.
All basic services will move to the State Information System Authority (RIA). This includes internet, computers, and software.
Artificial intelligence is a key part of the reform. Luht said AI is not a separate project but a natural stage in the development of the digital state. We need to find the best way to use it.
The reform increases cooperation with the private sector. The state will specify the solutions it needs, and the private sector will provide them. This will also help Estonia's economy.
The state's IT costs are 300 million euros per year. The reform does not reduce this amount but makes the use of money smarter. More money will go to important things that provide value to people.
Luht emphasized that IT should not receive less funding. Currently, IT spending is about 1.8% of GDP. This money supports all digital services.
The reform will create a new position—Chief IT Architect. Their job will be to ensure all state systems work well together.
About 200 jobs will be cut in the IT sector. But Luht said the number of employees has grown rapidly in recent years. Now we need to find better ways to do the work.
Former RIA head Taimar Peterkop said the reform addresses the right problems. Six IT houses is a good number. Too much centralization could harm service quality.
Peterkop said IT costs are rising worldwide. The reform will not bring significant savings but will improve the use of money.
Key changes of the reform: - IT governance will be consolidated around RIA and the new Digital State Center - A digital council will be created, including private sector experts - The IT budgeting system will be updated - Duplication of the same tasks in multiple places will be prohibited