HP, the largest supplier of IT products and services to the UK government, has signed a memorandum of understanding (MoU) with the Cabinet Office to reduce IT expenditure.
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Speaking recently to Computer Weekly, Bill McCluggage, deputy government CIO and director of ICT strategy and policy at the Office of the Government CIO, said, "The [government] IT strategy is clearly focused on reducing the cost structure while improving current services."
So far services companies including Capgemini, Atos Origin, LogicaCmg and Accenture have signed the agreement, which aims to slash the £16.9bn annual IT services bill.
The government aims to negotiate all its IT contracts. Rather than deal with individual departments, suppliers will now deal with one customer. This should avoid overlapping projects and enable departments to share the intellectual property they gain from their IT projects. Through the MoU, suppliers will only be able to sell a system to the UK government once.