IT service provider Steria is the latest in an increasingly long line of IT providers to sign up to the government's memorandum of understanding (MoU), which is likely to see the company take a hit on its margins.
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The MoUs are part of a renegotiation process on outsourced service contracts announced by Cabinet Office minister Francis Maude in July. It is thought they will save the government hundreds of thousands of pounds by asking suppliers to cut their prices.
John Torrie, Steria UK CEO, said the company remains on track to deliver business services to UK government departments.
"These services are delivered in close working partnership with our customers, and with the express purpose of reducing operational costs and achieving savings that will ultimately benefit the wider economy," he said.
Steria recently reported sales for the first nine months of 2010 of €402.8m, a growth of 8% compared to the same period in 2009.