A total of £412m was saved by Treasury buying agency OGCbuying.solutions last year, through a variety of new procurement methods.
In its annual report, OGCbuying.solutions said the £412m in savings were delivered on £2.7bn of public sector expenditure, and exceeded government targets of £400m.
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OGCbuying.solutions said the savings figure was 28% higher than the previous year, and that it now aimed to save at least £500m for the government in the coming year.
The agency has introduced a range of electronic buying services, including e-auctions, e-sourcing and the Zanzibar e-procurement system.
The agency also recently renegotiated government software contracts with Microsoft and Oracle, and it said that it expects that these new deals will save government bodies £1.5m and £30m respectively.
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