HM Treasury is to use Fujitsu Systems to refresh its information and communication technology services under a Cabinet Office contract estimated to be worth £50m over five years.
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Around 50 Treasury staff will transfer to Fujitsu under TUPE rules.
The deal, which will see the Treasury outsource its desktop estate to Fujitsu, will include 1,750 users new laptops running Microsoft Office 2007 and docking stations to go with existing monitors, keyboards and mice. Printers will come from Lexmark.
Fujitsu will also supply and manage virtualised Fujitsu and HP servers, linking the desktop units with thin client software, which is unnamed for security reasons, said a Treasury spokesman.
The spokesman said the deal was "not a cash-releasing programme". Treasury was replacing both hardware and software that had reached end of life and was therefore no longer supported, he said.
"This contract provides us with a stable operating environment and is in line with the cross-government shared service strategy," he said.
The Cabinet Office negotiated the seven-year Public Sector Flex outsourcing contract with Fujitsu in 2007. The core service is thin client but this can be swapped out for anyone who needs fat client or laptop environments, even if some applications are actually delivered to those desk tops on a thin client basis.
Organisations joining Flex will benefit from a "Core Shared Service". This is a security-accredited service that delivers up to date applications from a shared data centre facility, through a fully managed infrastructure. Users have access to ITIL-compliant support accessible through a shared service desk.
Optional Flex services include voice services, legacy application support, enhanced service levels, 'Confidential' level security, bespoke development, consultancy, and transition and transformation services.
This deal was expected to reduce Cabinet Office's carbon emissions by some 320 tonnes a year.