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Government to reduce billions of managed IT services spending

News Article - Friday, July 4, 2008 12:01
Filed under: Hosting, Storage & Managed Services
The government is looking to save billions of pounds in managed IT services efficiencies over the next 12 months.

Martin Read, the recently appointed government IT chief, will lead the operational efficiency programme in order to provide more "value for money" in managed IT services.

The treasury has worked out that £5 billion of the £140 billion which is spent on procuring managed IT services could be saved each year.

In addition, savings of £1.5 billion a year could be made by better use of building and office space, according to the treasury.

The whole campaign will cover back office and IT, collaborative procurement, asset management and sales, property and local incentives and empowerment in the public sector.

Yvette Cooper, the treasury secretary, said: "Private sector experience suggests significant savings of ten to 50 per cent may be possible, with an estimated £7 billion spent on finance and human resources functions alone in the public sector."

The Department for Work and Pensions is also looking for managed IT services worth £3 billion, to replace its current systems.
 
 
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