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Government IT cuts already producing savings

Simon Quicke

The government claims that its attempts to turn the screws on ICT spending and use technology more efficiently have already contributed heavily to savings of £1bn racked up since May.

The Cabinet Office revealed that the savings, which are part of a planned £3bn being saved in a single year, were made through a moratorium on consulting, ICT, recruitment and property spending.

As part of the specific measures around IT there has been a high profile process of the government renegotiating on contracts with large vendors signing a memorandum of understanding making a commitment to reducing their costs.

The Cabinet Office has also produced a list of all IT contracts over £1m that are currently being worked on as part of its promise to be more open about where money is being spent.

Francis Maude, Minister for the Cabinet Office, said that it would leave "no stone unturned" in its hunt for savings.

But he said that there was still a challenge getting good data to help guide where efficiencies could be made and it was working to cover that gap.

"This reform programme has required a culture change in Government, as the system is not set up to operate efficiently. As Sir Philip Green pointed out, the quality of basic management information that Government has previously collected is appalling," he said.


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