Verio lands £6m government web-hosting deal

Verio UK, part of NTT Communications, has scored a £6m deal to supply tech to three government departments as part of a shared services venture by the Cabinet Office, the Department for Education and Skills, and the Department of Health.

Under the contract Verio will provide web hosting, managed security and content distribution to outsourcer Xansa, which will use the services as part of a shared web services platform for the three government bodies.

By taking a shared services approach, the government says it is aiming to cut costs by reusing resources and avoiding repetition of duplicate purchasing - one reason why shared services is becoming increasingly common in government.

However, while the promise of cost savings is never going to be unpopular, the increasing shift towards shared services will also need a parallel shift in thinking, according to those who work in the public sector.

Department for Work and Pensions IS strategy director Keith Palmer said recently: "We are moving to shared services, to realise efficiencies, by standardising and simplifying. We will need strong, strong leadership... It's a cultural change."