Government's Oracle deal saves £75 million

29 March 2012

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29 March 2012 | Adam Leach

The Cabinet Office and IT supplier Oracle have signed off on an arrangement that brings all their business together into one deal that will save £75 million by 2015.

Signed yesterday, the agreement means while previously almost every department had a deal with Oracle there is now just one central arrangement. It means that there is a single discount rate and enables software licenses to be transferred between departments. Savings will also be driven through economies of scale and reduced back office costs as a result of requiring fewer software upgrades.

Government CPO, John Collington, said: “The simplification of the relationship will ultimately drive economic benefits throughout the government estate, allow easier and more effective procurement of Oracle products and services. It will open up a new and collaborative relationship between government and Oracle.”

On Tuesday, the government also signed a contract with print and IT services company M2 for print audit services. The deal, which is handled by the Government Procurement Service (GPS) will see M2 provide audit consultancy services, including physical site audits, IT infrastructure assessments and environmental impact reviews to any government agency that requests them.

John Taylor, CEO at M2, said: “The government’s efforts to drive up standards in procurement and to make it easier for public sector departments to deliver high quality, cost effective services is perfect fit for M2.”

The deal is part of an IT framework being managed by GPS and regional purchasing groups YPO and ESPO. Last week, Xerox was selected as the sole supplier for an estimated £150 million multifunctional devices contract through the framework. It will provide managed print and technology services across government.

 

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