The government’s Department for Work and Pensions has renegotiated its Child Support Agency (CSA) contract with outsourcer EDS, after the troubled CSA systems continually wrought havoc for the department.
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The renegotiation is designed to save the government around £1bn over five years. The department has consolidated separate EDS contracts into a single one lasting until 2010 and migrated to simpler IT systems.
The government had threatened to scrap EDS’s CSA system, but has been reassured by EDS that it has suitable plans in place to rectify problems.
The Tory opposition has criticised the government for sticking with EDS, as it says there are no guarantees that EDS’s future systems will work.
EDS’s management of the CSA system has been a major factor for delayed maintenance payments made by absent parents.
EDS has recently lost Inland Revenue and NHS contracts as a result of bungled systems.