Gartner has advised governments to aggressively introduce teleworking among public sector employees to compensate for cost-reduction measures such as salary freezes.
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The market researcher was outlining a number of "radical steps" that it believed governments needed to take to make further cost savings in the current uncertain economic conditions.
Among other proposals, it suggested administrations should use public cloud services, consider open source and cloud software and deploy 'crowdsourcing' to address particular problems.
Gartner also urged governments to cancel high-risk, high-profile programmes, link interoperability frameworks to immediate benefits and shut down channels and e-channels for citizen-facing services.
Governments should also reward employees for cost-saving innovation, Gartner added, pointing to the "spending challenge" initiated by the UK Treasury to solicit cost-cutting ideas from public sector employees for the October Spending Review.
Claudio Da Rold, vice president and distinguished analyst at Gartner claimed the UK and European governments were following in the footsteps of commercial organisations.
"We expect that governments in Europe are likely to follow the UK's spending cuts and gradually move toward increasingly considering consolidation, outsourcing, global delivery models and industrialised services as potentially viable options to reduce spending," he added.