Cap contract leads flurry of new deals

In one of the largest outsourcing contracts of 2004, Capgemini has signed a 10-year, £2bn contract to provide IT and business...

In one of the largest outsourcing contracts of 2004, Capgemini has signed a 10-year, £2bn contract to provide IT and business process consultancy services to US-based power company TXU.

The companies will create Capgemini Energy Limited Partnership to provide services initially to TXU, with a plan to offer similar services to other energy companies in the future.

Other outsourcing suppliers last week announced a slew of new deals, partnerships and contract extensions.

Motor insurer Cox has signed a £138m, 10-year contract with CGI Group Europe to manage all aspects of the insurer's IT infrastructure. More than 200 Cox staff will transfer to CGI.

Suffolk County Council, Mid-Suffolk District Council and BT have signed a 10-year, £380m partnership to create an IT services joint venture. BT will invest £50m over the course of the contract in systems and infrastructure. Suffolk County Council will invest £30m a year and the smaller government body will pay £3m a year.

BT has also signed a £40m deal with recruitment agency Manpower to roll out a global network and telecoms infrastructure.

Computer Sciences Corporation has signed contracts worth a total of £62m with Whitbread, Allders Department Stores, DIY retailer Homebase and tobacco company Gallaher.

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