Government saves £450m by rolling back IT projects

The government has saved £450m by rolling back IT projects and reducing departmental IT spend.

This Article Covers

Outsourcing

The government has saved £450m by rolling back IT projects and reducing departmental IT spend.

Cabinet Office minister Francis Maude said the government has saved £3.75bn since May last year as part of the coalition's cost-cutting drive. Of this figure, £150m has been saved by halting or curtailing spend on major IT projects and £300m by reducing spend on lower value IT projects, said Maude.

One of the biggest project cancellations was the scrapping of FireControl at the end of last year.

An additional £870m has been cut on consultancy spend and £350m has been saved by centralising spend on common services, while £300m has been saved by shrinking the size of the civil service.

However, since Maude last announced Cabinet Office cost savings of £3bn, no further expenditure has been cut through contract renegotiations with the government's largest suppliers, with the figure of £800m remaining unchanged since March.

The news follows a damning report from MPs which found the government sometimes pays 10 times as much as the standard commercial rate for IT projects.

Commenting on the £3.75bn in cost savings, Maude said: "We will continue to seek out and eradicate waste in government, while also delivering longer-term programmes of reform to ensure sustainable change and room for growth across the public sector."


Photo: Cabinet Office

CW+

Features

Enjoy the benefits of CW+ membership, learn more and join.

Read more on IT outsourcing

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close