BT and HP sign MoUs with government

BT and HP have announced the signing of memorandums of understanding in response to the government's call for further efficiencies in deals with IT suppliers. Neither company provided many details in its statement, but both said all of their existing contracts with central government will remain. Both are major suppliers to the government. The Cabinet Office has already signed deals with a number of the 19 suppliers it called in for discussions in July, including Logica, Capgemini, Atos Origin and Siemens. * BT's finances will not be affected by government efforts to renegotiate massive IT contracts, it told investors on 15 October 2010, reports The Register . The Cabinet Office has been seeking savings from all major contractors. BT said its discussions with Minister Francis Maude agreed new efficiencies but will not damage its bottom line. Jeff Kelly, who as Global Services chief executive has overseen heavy cost-cutting in the last year, said: "Having found efficiencies in our own business, we have considerable experience which can help the government meet its efficiency objectives. "With today's agreement, we will continue to be one of its largest suppliers of networked IT services."