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The five-year contract has already led to British Waterways - which manages and maintains 2,000 miles of canals and rivers in the UK - reducing its server requirements by 60%.
Fujitsu is migrating the organisation from Novell-based servers and e-mail systems to Microsoft Windows operating systems and Exchange mail servers, as part of an ongoing upgrade that also includes desktops and laptops.
The services firm is also providing a 24-hour helpdesk for British Waterway's 1,500 staff, including the 75 who work remotely. The desktops will be managed remotely by a Fujitsu support centre and 16 British Waterways IT staff will transfer to Fujitsu under TUPE staff-transfer rules.
British Waterways said the contract was part of its strategy to modernise and become more independent of the government. The cost savings will assist it in achieving its objective of becoming largely self-sufficient by 2012, reducing the funding it gets from the Department for Environment, Food and Rural Affairs.
Richard Walsh, British Waterways IT director, said, "It is important for us to cut costs in as many ways as we can. Obviously, IT must play its part. Fujitsu's proposal demonstrated the best-value while providing the most comprehensive option for us."