Xerox and Vertex have become two of the last large IT suppliers to sign cost saving agreements with the government.
Xerox, however, said it was “one of the first” among second tier suppliers to do so.
Both Xerox and Vertex have signed a memorandum of understanding that is likely to be similar to those signed by HP, IBM, BT Fujitsu, Oracle, Microsoft, Siemens, Atos Origin, Accenture, Logica, Serco, Capita and Capgemini.
Under the agreements, of which details remain sketchy, each supplier has retained at least a large amount of its original work. The government will buy from the suppliers as a single customer, instead of as different departments.
The government has been negotiating for some time with CSC to reach a memorandum of understanding. CSC, the largest supplier on the NHS National Programme for IT with a near £3 billion contract, is understood to have been in discussions since the spring.