{"id":21006,"date":"2016-03-08T09:49:20","date_gmt":"2016-03-08T09:49:20","guid":{"rendered":"http:\/\/www.businesscloudnews.com\/?p=246292"},"modified":"2016-03-08T09:49:20","modified_gmt":"2016-03-08T09:49:20","slug":"e-procurement-platform-could-save-uk-government-10-billion-report","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/e-procurement-platform-could-save-uk-government-10-billion-report\/","title":{"rendered":"E-procurement platform could save UK government \u00a310 billion \u2013 report"},"content":{"rendered":"

\"Duncan:<\/a><\/p>\n

Central government could save up to \u00a310 billion per annum through a reformed e-procurement platform, placing a greater emphasis on administrative efficiencies and market competition, according to a new report.<\/p>\n

With the use of e-procurement models championed by the likes of South Korea and Estonia, The Reform, a public-service think-tank, claims<\/a> that savings of 25% could be made to the present $40 billion procurement bill. Even if e-procurement growth continued on trend, UK government would be set to save in the region of \u00a3550 million annually.<\/p>\n

Whilst there is a large level of scrutiny placed on the government spending, significant steps have been made since 2010. The government now procures more than 25% of its services from small and medium-sized businesses, and since 2015, has relied upon G-Cloud for the procurement of cloud services.<\/p>\n

G-Cloud as a platform has lowered barriers to entry, allowing more firms to compete for government business, and saving in the region of 20-50% when compared to legacy contracts. Building on this success, the implementation of the Crown Marketplace platform will enable government to move e-procurement models to new departments beyond IT services.<\/p>\n

While it is still early days within the UK, other countries have demonstrated the wide benefits of e-procurement. Estonia currently attributes roughly 50% of its expenditure through e-procurement platforms, saving an estimated 30-40% on the cost of administrating procurement.<\/p>\n

The Reform has recommended a consolidated platform for all government procurement activities:<\/p>\n

\u201cThe Crown Marketplace should be a single portal for the e-procurement of goods and services. This should be accompanied by an integrated payment function,\u201d said the report. \u201cThe framework to purchase commodities must be recompleted regularly to ensure maximum competition.\u201d<\/p>\n

While the immediate benefits demonstrate a reduction in expenditure, the move away from the current process will allow government employees to create value-for-money propositions, as opposed to drowning in administrative tasks.<\/p>\n

Though the report and supporting statistics demonstrates a positive outlook for government spend, the potential of e-procurement can only be achieved if trends accelerate. The report highlights \u201cIf e-procurement continues to expand at the rate of G-Cloud growth in 2015, total government e-procurement spend could reach \u00a33 billion by 2020\u201d<\/p>\n

Current e-procurement adoption levels would see UK central government save in the region of \u00a31.8 billion and \u00a34.5 billion depending on the level of pro-rata savings, though emulating the example of South Korea or Estonia would see the UK save in excess of \u00a310 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"

Central government could save up to £10 billion per annum through a reformed e-procurement platform, placing a greater emphasis on administrative efficiencies and market competition, according to a new report.<\/p>\n","protected":false},"author":203,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4012,1976,2113,3492,4013,2729],"tags":[],"class_list":["post-21006","post","type-post","status-publish","format-standard","hentry","category-e-procurement","category-news-analysis","category-public-sector","category-public-sector-cloud","category-the-reform","category-uk-government"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/21006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/203"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=21006"}],"version-history":[{"count":1,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/21006\/revisions"}],"predecessor-version":[{"id":21007,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/21006\/revisions\/21007"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=21006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=21006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=21006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}