The Home Office has completed the final £13m phase of a shared services enterprise resource planning (ERP) system which is expected to save between £40 and £50m.
The bulk of the savings will come from greater back-office efficiency and economies of scale by using centralised systems and services, the Home Office said.
The system is also expected to improve productivity, enable more self-service facilities and optimise processes such as payments of invoices and expense claims.
The system provides finance, procurement and human resources systems using Oracle software as a shared service for a number of agencies.
Fiona Spencer, Home Office director of shared services, said good governance and a proven methodology will ensure clear accountability and transparency.
"That will enable strong leadership and business ownership, the ability to make tough decisions and trust between all partners," she said.