Did Fujitsu misprice the DWP deal?

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Following the ending of the £330m plus desktop services agreement between Fujitsu and the Department of Work and Pensions, the industry is discussing how Fujitsu managed to fail to take on the services from HP.

As revealed last week Fujitsu was not able to complete the transition of the service from incumbent HP.

I spoke to a contact this morning and he tells me that Fujitsu mispriced the deal. He says the price was too low and Fujitsu would have lost lots of money.

He even suggested that the DWP probably realised it was mispriced but had to sign the deal because it was a public tender.

Another source told me that the Fujitsu price was very aggressive and "much lower than the competition."

He says government contracts give marks for the price and if Fujitsu scored well on other apects of the deal and had the lowest price it would win.


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This page contains a single entry by Karl Flinders published on March 21, 2011 2:00 PM.

Lloyds Banking Group removes another 1000 in-house jobs was the previous entry in this blog.

Masochistic government IT offshoring rules that reduce tax revenue and increase discontent is the next entry in this blog.

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