The largest players in the software world have joined a host of government suppliers signing a joint memorandum of understanding (MOU) with the Cabinet Office as part of the ongoing efforts by the coalition to cut costs.
Oracle and Microsoft join the likes of Logica, Atos Origin, Siemens IT Solutions and Accenture signing on the dotted line to make sure that Francis Maude, minister for the Cabinet Office, can add them to the list of major government suppliers that are prepared to help it deliver efficiencies.
Maude started his quest earlier this summer when he sat down with 30 suppliers and stated the need to get more for less as the country tightened its belt looking for efficiency in existing and new IT contracts.
He stated the aim of his discussions with suppliers back in July: "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".
Dr. Nicola Hodson, general manager, public sector at Microsoft, said that it recognised it not only had to help the government cut costs but continue to be innovative with technology.
David Callaghan, senior vice president for Oracle UK, said that it had signed a joint memorandum of understanding and could help the government cut costs.
"Under this agreement Oracle will continue to work to deliver innovative products and services that can drive the efficiencies that the government is committed to achieve. We take very seriously our role as a long term strategic partner for UK Government and look forward to establishing further initiatives in support of this."
Logica signed the MOU at the end of last month pointing out that it could make efficiency savings on its existing government contracts without impacting its financial forecasts.