US Secretary of Defence Pete Hegseth has ordered the termination of IT service contracts valued at $5.1 billion with firms including Accenture and Deloitte, as per a report. The decision put out in an internal memo marks a major shift in Pentagon’s approach to technology services and spending. 

The memo described the contracts as “non-essential spending on third-party consultants” for services that could very well be carried out by existing Pentagon personnel. Secretary Hegseth emphasised that the expenditures were wasteful and projected that ending these contracts could result in up to $4 billion in savings.

Pentagon’s broader strategy has been to strengthen internal capabilities and reduce reliance on external firms for routine IT services. This initiative aligns with a growing effort to optimise defence spending and enhance operational efficiency.

This termination represents one of the most significant policy decisions under Hegseth’s leadership and signals a clear shift towards empowering in-house experts while cutting down on IT-related expenses.