The government believes that an improved IT department and back office efficiencies could save it £5 billion.
Under a new efficiency plan, costs in IT will be cut, with the government also working with the private sector to make these changes, reports Computerworld.
A spokesperson told the website: "After consultation with the private sector, there is the suggestion that between ten and 50 percent could be cut from IT procurement costs."
With the government spending £7 billion on its IT provision, a £5 billion saving would represent a large cut.
The new efficiency plan will be announced by Yvette Cooper, the treasury secretary, later this month, with IT being the main area of focus.
She said the government needed to get "more bang for their buck" as they continue to cut costs.
Recently, the British Computer Society has highlighted the most successful IT projects, naming a car share scheme from the Environment Agency as one of the top sites.
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