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IT contracts to be capped in fresh push to make public sector SME friendlyThe Guardian

The Guardian - The government is to introduce a limit to the length of IT contracts, starting with application software and hosting IT deals.

The move, announced by Cabinet Office minister Francis Maude, is part of a range of measures aimed at making public procurement more accessible to SME suppliers.

From now on, hosting deals will be limited to 12 month durations, while application development deals will be reassessed every four months.

It is also introducing break point into IT contracts, so "less money is locked into the large, lengthy contracts that are actually the bane of our lives in a whole lot of areas of government, making it more difficult to drive value", Maude said.

The government is looking to disaggregate contracts across IT in favour of smaller and more flexible deals.