The public sector must adopt a private sector approach to the disposal of IT hardware, the National Audit Office (NAO) has warned. It claimed public bodies could generate significant savings by following best commercial practice and disposing of equipment after three years. On average, the public sector replaces its IT equipment every five years, but a three-year cycle would reduce operating costs and increase the resale value for the equipment.' NAO head, Sir John Bourn, said: ‘Government needs to understand better the trade-offs between securing better immediate financial value and the wider environmental costs.'