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HP agrees to reduce government’s IT bill

Date: 1st November 2010

HP, the largest supplier of IT products and services to the UK government, has signed a memorandum of understanding with the Cabinet Office to reduce IT expenditure. Bill McCluggage, deputy government CIO and director of ICT strategy and policy at the Office of the Government CIO, said, “The [government] IT strategy is clearly focused on reducing the cost structure while improving current services.”

So far services companies including Capgemini, Atos Origin, LogicaCmg and Accenture have signed the agreement, which aims to slash the £16.9 billion annual IT services bill.

Keysource says: Any cuts in spend should be taken as part of a strategic assessment of the overall IT strategy. Any review needs to consider the wider costs of the existing infrastructure and consider overheads such as energy consumption, which makes up a significant part any ongoing IT outlay. By removing older, underperforming data centres and investing in facilities that adopt leading edge technology solutions, the government not only has the opportunity to drive down IT costs, but also increase or maintain capacity.


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