Public sector bodies get cut-price SAP under government deal

UK public sector organisations can now get cut-price deals on SAP software and services under the terms of a memorandum of understanding between the enterprise software firm and government procurement agency OGCbuying.solutions.

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UK public sector organisations can now get cut-price deals on SAP software and services under the terms of a memorandum of understanding between the enterprise software firm and government procurement agency OGCbuying.solutions.

Under the agreement, SAP will offer discounts on software, based on purchase order value, with additional price reductions in recognition of the total government spend with the enterprise software firm.

The agreement is expected to deliver savings of up to £45m over its three-year duration. It is also aimed at supporting the Transformational Government strategy launched by the Cabinet Office, which aims to improve public service delivery through IT, with a strong emphasis on efficiency gains through increased use of shared services.

The deal makes SAP the first of the government's strategic software suppliers to offer full licence transferability, allowing qualifying public sector bodies to transfer licences between government departments – a move that will support the drive for more shared services.

The memorandum also includes an option for public sector organisations to enter into an enterprise licence agreement that will attract further discounts.

Derek Rothwell, director of procurement at 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.”

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