Government deal with SAP to save £45 million

The government has signed a new agreement with business software provider SAP, which could save as much as 45 million over the course of the three-year deal.

OGCbuying.solutions, the trading arm of the Office of Government Commerce (OGC), signed a memorandum of understanding (MOU) with SAP which will see all public sector organisations benefit from discounted SAP pricing.

A spokesperson for OGCbuying.solutions said the expected 15 million a year in savings is based on SAP's projected public sector sales.

"The savings that this MOU delivers can be reinvested into front-line public services, where they will produce visible benefits to the taxpayer," said Derek Rothwell, the director of procurement at OGCbuying.solutions.

SAP will be offering the discounts based upon the total amount of the purchase order value - essentially, a bulk savings. SAP is also the first government software supplier to allow licence transfers between public departments, which will help streamline processes, said SAP UK director and general manager Simon Etherington.