The government has unveiled a new information and communication technology strategy designed to save money by making the use of IT services more efficient.

Minister for the Cabinet Office Francis Maude outlined the strategy on Wednesday, explaining that it focused on cutting down duplication and waste, and promising an initial reduction in datacentre use by 35 per cent in five years.

The announcement is further evidence of the government’s determination to open up the procurement process to suppliers of all shapes and sizes, and ensure that the public sector achieves the best possible service from its suppliers.

Martyn Hart, chairman of the National Outsourcing Association, welcomed the government's plans to level the playing field for government IT contracts.

“At present, the government is tied into a range of contracts with large suppliers, which could mean that they struggle to get the best possible service as a result. In recent weeks, we’ve seen the coalition government pledging to support SMEs with a broad range of initiatives aimed at ensuring that larger outsourcing suppliers are not the only ones with access to public sector contracts. This morning’s announcement is designed to take this a step further and ensure a fairer procurement process for IT contracts in the public sector – which can only be a good thing.2

“It’s worth noting, however, that contracts with big-name suppliers are not necessarily a bad thing – many established names have a solid, established infrastructure which allows them to deliver projects in a timely, efficient manner. However, by pledging to free policy makers from the multi-billion pound contracts they have been tied to, and creating a ‘presumption against’ IT contracts in excess of £100 million, the government is ensuring that public sector procurement for IT is more cost-effective and competitive, which is good news for the outsourcing industry and the public sector as a whole."

“The NOA also notes that the Cabinet Office’s announcement related largely to ICT, which typically refers to the provision of hardware and software. However, it’s worth remembering that most major outsourcing and shared services contracts are also dependent to a large extent on building relationships and understanding business processes, which, if not effectively established, can lead to operational inefficiencies. Perhaps it would have been useful for the Cabinet Office to have considered these areas as well?”

The government was criticised over the way it procures and uses technology during several public affairs committee hearings examining the use of ICT within government.