Business Value from IT

Business Value from IT

Ministry of Justice – Cost Saving Strategy

The Ministry of Justice (MoJ) is a £8.2 billion central government department responsible for the policy, management and oversight of the UK’s justice lifecycle including Her Majesty’s Courts, Prison and Probation Services.

The Challenge

A pan MoJ project was required to examine and identify major technology cost savings in order to support MoJ’s contribution towards the Government’s on- going austerity programme. In 2010 MoJ established a programme of work to combine legacy tower contracts with a view to reducing operation costs.

However by 2015, the MoJ was looking for further cost savings. Virtrium were commissioned to identify areas that could provide efficiencies in the next parliament, with a target of £20m from operational run costs.

Virtrium’s Approach

The project focus was how MoJ could use the growing range of cloud based technology services now available and marry these up with the remaining legacy services in order to support a complex justice operation and remain within the realms of affordability. Virtrium and the project team undertook a phased approach working with MoJ’s partners. Using a combination of over 70 interviews, detailed documentary and contractual reviews Virtrium identified over 140 cost saving measures across 26 key areas. These were analysed and refined down to ten major cost saving initiatives and a further 20 point solutions.

The Outcomes

Virtrium and the MoJ team were able to comfortably exceed the savings expected by combining a range of cloud based service provisions such as Microsoft Azure and Office 365 with an enhanced commercial position and more effective operating model upon which to deliver the corporate objectives.

  • The Technology Cost Review (TCR) identified between £55m and £73m worth of potential savings against FY14-15 MoJ OPEX and CAPEX costs – more than doubling the expected savings.
  • The cost saving recommendations aligned with MoJ’s existing sourcing strategy, directly supported expected outcomes and complemented the wider Government Digital
  • Virtrium’s recommended option evolves and built on the proposed MoJ sourcing transition by delivering enterprise wide services faster and more cost effectively than previously planned.

“Using their commercial skills, knowledge of IT service operations and the market they quickly established a full understanding of a complex service operation and delivered a full range of cost savings that far exceeded my expectations.”

David Cooke - Director of Service Delivery

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