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NPI delays again for CSC to meet criteria

NPI has still not signed a contract to outsource its IT functions to CSC because the services specialist has not met a number of...

NPI has still not signed a contract to outsource its IT functions to CSC because the services specialist has not met a number of criteria.

A deal was due to be signed at the end of last year, but it has since been postponed a number of times (see MicroScope, 5 December 2000).

After weeks of dallying, a provisional date of 1 March was given for the deal to be signed off, but the date has come and gone without any signs of an agreement on the horizon.

A possible stumbling block revealed by an inside source at NPI appears to be that the insurance giant’s Australian parent company, AMP, is using the contract in the UK to push CSC for better service in Australia.

“We were told that the deal was going to be signed off on 1 March, but on the day we were told it was not going to happen because CSC had failed to make the improvements it had been asked to with AMP,” said the source.

A spokesman for NPI said: “A date for the exchange of contracts has not yet been finalised. CSC has to meet a number of criteria before the contract can actually become live.” He did not divulge exactly what the criteria were.

Originally, CSC had been competing with IBM Global Services for the outsourced business with NPI, but IBM dropped out of the running, leaving CSC as the preferred bidder.

NPI currently holds all of its IT functions inhouse.

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