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Government looks to extend £800m savings on IT to rest of public sector

The Guardian - The government says it has saved £800m in IT costs over the past financial year by persuading its biggest suppliers to cut their charges and scrapping contracts. But how effective has the programme really been?

Last December, the Cabinet Office announced a "new approach" to suppliers and now says it is sharing this new approach with other public bodies to help them get a better deal from suppliers at a time of deep spending cuts.

The savings in central government's IT procurement between April 2010 and March 2011 came from supplier rebates, suppliers reducing their profit margins, "de-scoping" contracts (reducing their goals or simplifying), and cancelling contracts or parts of contracts, according to the Cabinet Office.