HP has lost a major contract to Fujitsu Services after the Department for Work and Pensions (DWP) named Fujitsu as its preferred bidder for the desktop contract.
The change is part of an IT overhaul at the department. HP subsidiary EDS holds several contracts at DWP
A spokesperson at DWP said the contract winner would be announced in late January or early February, although she was unable to say when the contract work would begin.
The contract is for desktop services but the department could not say how much it is worth.
DWP CIO Joe Harley said in 2008, "We are reviewing our plans for our major IT services contracts as our principle existing contracts expire during 2010-11.
"We will be managing a series of competitions to replace existing contracts progressively by 2015."
DWP said at the time that it wants the new holder of the desktop contract to "help drive innovation and further bring down IT costs."
Also included in the overhaul will be contracts for hosting services, voice and data networks, application maintenance and support, data centres and integration services.