Public Services BPI Group 3
Date:
14/07/2010
Time:
09.15 - 13.00 Attachments:
Host:
Pinsent Masons
Venue:
Central London
Theme:
Revisiting your contracts, Cost reduction through ICT
On the 14th we will address two best practice themes in relation to the Efficiency and Reform Group agenda:
1. Revisiting contracts for maximum value: best practice in getting the most out of your arrangements
A critical issue in current Efficiency and Reform agenda, we will be addressing how public service leaders can review their current service contracts to improve value for money. With perspectives from EquaTerra and Pinsent Masons, participants will discuss how best to assess their current arrangements. Proceedings all conducted under the Chatham House rule.
2. Practical options for cost reductions: international experience from the public and private sectors in saving 10, 20 and 30%
SAP will present the lessons learned from his experience to date in how to reduce costs, drawing on public sector case studies to help participants compare their own cost reduction programmes.
Guest Speaker(s):
John Mackie, Director, EquaTerra, Kathrine Eddon, Senior Associate, Pinsent Masons, Simon Godfrey, Director, SAP
Attendees:
HMRC, Defra, Cabinet Office, Cambridgeshire CC, DFID, TfL, DH, Citizens Advice Bureau, IDeA, Hampshire CC, Royal Mail amongst others
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Comments
Contract negotiation with Cabinet Office
An update on the re-negotiation of contracts dictated by Francis Maude. Government has now reached cost cutting agreements with more of its 19 largest suppliers. Cable & Wireless, Steria and Oracle are the latest to come to an agreement with the Cabinet Office to help government to save hundreds of millions of pounds. John Torrie, Steria's UK CEO said that Steria will continue to provide IT and business services to government. He said: "These services are delivered in close working partnership with our customers, and with the express purpose of reducing operational costs and achieving savings that will ultimately benefit the wider economy. "As we have seen with the NHS Shared Business Services (SBS) model, these savings are achievable and can be re-invested in the front-line services which are most valued by citizens."
19 major IT Suppliers in talks with Maude
19 major public sector IT suppliers were involved in "an initial meeting to discuss how money can be saved the services they provide to government."
The negotiation programme is designed to include the majority of government suppliers.
The companies at the initial meeting with Maude were: HP, BT, Capgemini, Fujitsu, Capita, IBM, Telereal Trillium, Atos Origin, CSC, Logica, Steria, Oracle, Siemens, Cable & Wireless, Microsoft, Accenture, Serco, G4S and Vodafone.
ICT contract renegotiation
As part of the push to save £95m, Francis Maude, the Cabinet's chief enforcer authorises that all ICT contracts are to be reviewed to determine which should continue and which should be reshaped or stopped.
"Targets by contract have not been defined as each will need to be individually reviewed and negotiated," said Maude.
"The coalition government has made a clear manifesto pledge to open up government procurement and reduce costs," he said.
This is the first major step from the Efficiency and Reform Group towards major spending cuts and greater government transparency.
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