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Capgemini agrees IT cost-cutting for government

Karl Flinders

Capgemini has become the latest IT supplier to sign a Memorandum of Understanding (MOU) with the government on cutting the cost of IT.

Atos Origin was the first to sign such an agreement last week.

In July government minister Francis Maude met the CEOs of the government's major IT suppliers to ask them to reduce the cost of services. The government said it was willing to listen to suppliers for ideas about how to cut costs.

Details are sparse but Capgemini said, "All existing contracts remain and continue to be delivered as planned. [We have] also presented a range of new business opportunities to enable the commitment of savings to [the government]."

Capgemini has also proposed other technology innovations that could cut costs in the long run.

Earlier Atos Origin singed an MOU with the government and said it "will continue to deliver all its existing IT contracts to UK government, and will look for further business opportunities, building on the agreed centralised approach".

A source close to the negotiations told Computer Weekly last week that the government had received a mixed response to the challenge it set suppliers.

He said suppliers offering IT standardisation to remove costs, and asking the government to make it easier to deal with them, are getting a positive response. But some suppliers are offering price reductions in return for contract extensions. These are going down less well, he added.

Related Topics: IT outsourcing, VIEW ALL TOPICS

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