Government signs new software deal with SAP - Bapco Journal

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Government signs new software deal with SAP

Published: 
23 March, 2007

OGCbuying.solutions, trading arm of the Office of Government Commerce (OGC) has signed a new Memorandum of Understanding (MOU) with one of the world's leading business software providers, SAP. This new agreement will offer all public sector organisations preferential pricing arrangements on SAP software and services.

The agreement came into effect on 1st January 2007 and will deliver potential savings of £45 million over the three year duration of the agreement. The savings delivered will support the public sector in its continued drive towards meeting its efficiency targets. The agreement will also support the Transformational Government agenda through greater use of packaged software and allow much needed resources to be reinvested into front-line public services, where they will produce visible benefits for the taxpayer.

As part of the MOU, SAP has offered discounts on software based upon purchase order value, with additional discounts made available in recognition of the total government spend with SAP.

In addition, SAP has become the first of the UK Government's strategic software suppliers to offer full licence transferability allowing qualifying public sector organisations to transfer licences between Government departments. This will ensure the UK public sector can maximise the use and deployment of SAP software as it reconfigures its organisations business models to better serve UK citizens. Such transferability will also support the Government's move to shared services.

Under the MOU, SAP has also included a further option for public sector organisations to enter into an Enterprise Licence Agreement which will attract further enhanced discounts.

Derek Rothwell, Director of Procurement, OGCbuying.solutions said:

"I am delighted that we have established this agreement with SAP (UK). It means that we can supply software licences to the public sector at prices which offer real value-for-money and in a manner that supports the Government's Transformational Government agenda. The savings that this MOU delivers can be reinvested into front-line public services, where they will produce visible benefits to the taxpayer".

Simon Etherington, Director & General Manager Public Services & Utilities, SAP UK:

"The MOU will enable public service organisations to streamline their business processes easily and effectively to better serve UK citizens and will generate efficiency savings which will fund further service improvement".





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