The council has claimed the money will saved by reducing the costs of IT contracts, increasing external income from IT, improving productivity through better use of new technologies, and further simplification of computerised processes.
Ken Thornber, leader of Hampshire CC, said the authority is "embarking on a change programme that is of an unprecedented scale". The £900,000 saving on IT is a part of that programme aimed at meeting a £55m funding gap in 2011-12.
"There can be no debate over whether or not we make cuts, the withdrawal of government funding to meet the national debt leaves us without that choice," Thornber said. "The issue is how we face up to these financial challenges, while laying strong foundations for the difficult years beyond."
The programme will see the merger of two departments, culture, communities and rural affairs with the property, business, regulatory services and IT, which Hampshire expects to make "significant" savings.
An estimated £400,000 will be saved through greater use of shared IT and other services. Hampshire already shares a head of internal audit with Southampton City Council and has developed a joint ICT strategy with Dorset CC. It will now look at opportunities for further collaboration.
It also aims to cut £1m from the cost of support and administrative functions using measures including greater automation and self-service. The council plans to reduce its tender processes and make more purchases jointly with internal and external organisations. It has no estimate for savings in this area.
Michael Larner, senior local government analyst at Kable, said: "The announcement reflects both the fact that the council is subject to
above average funding cuts, and the last Audit Commission report which found that it was performing well.
"Despite the aim of cutting IT costs, there will be a need for workflow management solutions to help the council reshape its functions, as well as self-service and commissioning services with other public sector bodies."
