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Using open source software was about "better and more effective government". He criticised government IT procurement for lacking "open standards" and making it difficult for small companies to get the contracts. "All too often a government IT system is incompatible with other types of software, which stifles competition and hampers innovation. "Looking at the litany of IT projects that have collapsed or spiralled over budget, it's clear too that this has meant billions of pounds wasted and public service reform being hampered," Mr Osborne said. "The government's approach needs to be overhauled."