In common with the wider public sector, the Ministry of Justice (MoJ) has challenging targets for driving cost savings out of its ICT supply chain, combined with an ongoing and ambitious ICT change programme.
Background
Further challenges come from the MOJ ICT contract landscape, which was created as a result of a number of Machinery of Government changes and covers 4 strategic supplier relationships and over 30 discrete contracts, employing a varied set of commercial models.
This complex environment generates a range of challenges, including uncoordinated termination and exit provisions and poor alignment to the Ministry’s changing business needs.
ASE was asked to advise and support the Ministry in:
- developing the in house capability of the ICT procurement function
- developing the Ministry's strategy for the next generation of its ICT contracts
- embedding strategic supplier management and category management across its ICT purchasing
- The review and re-negotiation of its current outsourced contracts.
Approach
ASE created the commercial framework within which the National Offender Management Service (NOMS) has delivered its Shared HR, Finance and Procurement Service technology.
ASE renegotiated the separate network services (provided by a common Tier 1 provider) across the NOMS technical infrastructure to deliver interoperability and common standards at a common, lower cost.
Renegotiations were also required for the infrastructure contract for the Probation Service in response to fundamentally changed service requirements and the need to derive increased cost transparency, control and value.
ASE provided consultancy support to the creation of the centralised ICT Procurement Function and leadership to this team in the development of their business plans.
Outcome
- Cost Management achieving a £30m cash savings programme across the Ministry's ICT purchasing, based on procurement category management and technology optimisation
- Robust and properly governed commercial strategies for projects and ICT organisations
- Improved value for money and transparency across the supplier base
- A shift in the balance of commercial power in Ministry's favour, as commercial models become less opaque and opportunities for competition real