The Cabinet Office has signed an agreement with supplier Accenture to cut the costs of its IT services across departments. Under the new agreement, a Memorandum of Understanding, Accenture will retain all of its UK government work. MoUs are not typically legally binding, but are considered a formal agreement of intention between parties.
Accenture is the fourth supplier to sign such an agreement, following in the footsteps of Logica, Atos Origin and Capgemini last month.
Accenture operates a number of contracts, including as a subcontractor to Capgemini at HM Revenue & Customs, and as a contractor to Defra on the troubled Rural Payments system. In 2006, it quit a £2 billion contract with the NHS for the National Programme for IT.
David Thomlinson, UK managing director at Accenture, said the company was “committed to helping the government achieve its savings.”
The government and Accenture did not detail how the savings would be achieved. But recent agreements between Whitehall and other suppliers have included steps such as cutting administration, as well as the government buying as a single supplier instead of as different departments.