Cabinet Office minister Francis Maude said departments, agencies and non-departmental government bodies (NDPB) have all been told to review IT projects to reduce costs.
He said targets for projects have not been set because, "Each project will need to be reviewed individually to ascertain if the project should be stopped, reshaped or continue."
Once departments have decided which projects to keep, they will need to start a contract renegotiation exercise with suppliers.
Departments and agencies will need to focus on the suppliers who get the largest overall revenues from UK public sector contracts. Again, Maude said targets by contract have not been defined as "each would need to be individually reviewed and negotiated".
Maude was responding to a written parliamentary answer from Labour MP for Hartlepool Iain Wright.
This story was first published by Computer Weekly