Government signs new public sector SAP deal to save £45m

Government procurement arm has signed a new three-year memorandum of understanding (MOU) with business software provider SAP

Government procurement arm has signed a new three-year memorandum of understanding (MOU) with business software provider SAP.

The new agreement will offer all public sector organisations preferential pricing arrangements on SAP software and services, and will deliver potential savings of up to £45m over the three years, said OGC.

As part of the MOU, SAP has offered discounts on software based upon purchase order value, with additional discounts made available in recognition of the total government spend with SAP.

In addition, SAP has become the first of the UK Government's strategic software suppliers to offer full licence transferability, allowing qualifying public sector organisations to transfer licences between government departments.

This will ensure the public sector can maximise the use and deployment of SAP software as it reconfigures its organisations’ business models to better serve citizens, said OGC.

Such transferability will also support the Government's move to shared services.

Under the MOU, SAP has also included a further option for public sector organisations to enter into an Enterprise Licence Agreement, which will attract further enhanced discounts.

Derek Rothwell, director of procurement at, said, “The MOU means that we can supply software licences to the public sector at prices which offer real value-for-money, and in a manner that supports the Government's Transformational Government agenda.

“The savings can be reinvested into front-line public services, where they will produce visible benefits to the taxpayer.” has similar agreements with Microsoft, Oracle and other major suppliers.

Related article: Treasury changes OGC remit

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