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Accenture Predicts UK Government to Cut Buying Costs by 30 Percent

Buying costs may soon be slashed across the U.K. — Accenture is reporting the U.K. government could potentially cut the cost of running procurement by 30 percent, a move that would be implemented upon the adoption of seven steps introducing shared services centers.

The report, titled “Seven Procurement Initiatives that Can Stretch Public Sector Budgets,” says consolidating operations into a “middle office” in low-cost areas could result in a significant reduction of facilities costs, while also suggesting they be located offshore “if politically feasible.”

Other suggestions include the use of cloud computing to provide more accurate procurement software and using an Amazon.com-style logistics system to cut the cost of goods delivery to the public sector.

The study placed a strong emphasis and government and public-sector leadership with regard to reduction of costs, suggesting that better management of strategic suppliers could evolve into contracts lasting up to 10 years, while creation of a virtual academy based on e-learning could improve training techniques in the public sector.

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