Current state and future prospects of Estonia's e-government system

The article discusses the current state and future prospects of Estonia's e-government system, highlighting the concerns of leading IT experts about its sustainability. According to Andres Birnbaum, CEO of CGI Estonia, the state's IT costs have significantly increased, reaching over 250 million euros annually. The main reason for this is the explosive growth in the number of employees in state IT agencies (TEHIK, SMIT, RIA, etc.), which has doubled compared to 2019 and now exceeds the number of employees in similar private sector companies.

Birnbaum estimates that the upkeep costs of IT agencies alone amount to about 100 million euros of the e-state's total annual expenditure. Originally created as a link between the заказчик ( заказчик) and service provider, these IT agencies have become the primary service providers, which means that ministries lack freedom of choice and competition has decreased, thereby affecting quality and the speed of developments. Officials themselves admit their dissatisfaction, as the only option is to communicate directly with IT agency employees, which has led to long waiting lists.

The current system, where the state procures solutions from IT agencies that mainly purchase the services of individual specialists from the private sector, has turned Estonian IT companies into something akin to temporary staffing agencies, preventing them from creating comprehensive and responsible references, which are crucial for competing in foreign markets. Tarmo Kiivit, a partner at Helmes, also agrees that there is a move towards role-based solutions, which limits the opportunities for the private sector to offer complete solutions and harms export capabilities. Both experts express concern about the competitiveness of the Estonian IT sector in foreign markets, as the hourly rate-based approach is no longer sustainable.

Birnbaum emphasizes that the increase in IT costs is not only due to the growth of IT agencies but also to the complexity of the state itself, citing the creation of a car tax instead of using the existing fuel excise duty model as an example. As solutions, Birnbaum and Kiivit see changes in the state's IT management and procurement, a more responsibility and results-based approach, the commissioning of comprehensive solutions, and earlier cooperation with the private sector in designing solutions. Kiivit also draws attention to the fragmentation of developments and recommends moving towards creating universally applicable tools and services in the public sector.

Both experts see artificial intelligence (AI) as having great potential in accelerating processes and analysis, emphasizing the importance of using existing tools reasonably and securely. According to Birnbaum, AI can be used to modernize old systems, for example, by rewriting code. At the same time, they warn against the misuse of AI, especially in automating bureaucracy without simplifying processes.

Birnbaum currently feels optimistic about the discussions that have arisen and the government's promises regarding the inefficiency of the state's IT sector. In his opinion, everyone would benefit from the reform: the government would save significantly on IT costs, citizens would receive higher quality services, and the Estonian IT sector would receive a boost to restore its competitiveness and export capabilities. Birnbaum quotes President Lennart Meri, saying that Estonia is too poor a country to afford an expensive state, and that over time the system has become too complex.

Source: Delfi Ärileht