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A survey of Scottish local government IT managers confirms the existence of systems allowing modern decision support systems (DSS) to be successfully exploited. Extensive in‐house software exists across departmental functions indicating significant internal expertise. IT use is inversely related to managerial level, with the majority of users located in the central services and housing functions. The traditional supporting role of information systems and technology (IS/T) is changing as compulsory competitive tendering (CCT) is applied to the IS/T function itself. Considerable uncertainty surrounds decision making in IS/T as a result of proposed structural change to unitary authorities.

This paper shows how Quality Costs can be a measure of software quality. The relationship between Quality Costs and other software quality metrics is briefly explained, and software development oriented versions of the two principal Quality Cost models are described. Finally the paper discusses the major issues involved in setting up a software Quality Cost programme. The concepts are based on previous research on Quality Costs in manufacturing, coupled with work on software metrics and the work currently being undertaken by the authors in a number of industries.