Twenty of the largest public sector services suppliers are due to meet with the government today to explore ways of cutting costs.
Frances Maude Minister for the Cabinet Office and head of the Efficiency Reform Group (EFG) told the think-tank Reform yesterday that he will meet with chief executives from firms believed to include HP, IBM, BT, Capita and Serco.
"We will say we want to have something off your margins; we will expect you to show us how we can pay you less, sometimes for doing less," he told the conference.
A source close to the situation said the Office of Government Commerce, now controlled by the EFG, has called the meeting with the Market and Procurement team led by supplier relationship management head Richard Hassett.
"The government is looking to get under the skin of some of the long standing outsourcing contracts to save costs and potentially invest in others," said the source.