Could DWP loss be first of many for HP/EDS?

Suppliers will be hanging on the words of Joe Harley, the Department of Work and Pensions  CIO, who said after announcing a deal with Fujitsu, that there are more deals available as it replaces its current IT estate.

“This is the first in a series of competitions to replace our existing IT and telephony services contracts by 2015 and it sets the tone by delivering significant benefits for the Department and as a framework for Government wide IT,” said Harley.

Successful suppliers will be expected to provide green IT solutions, cut costs and retain high performance levels.

It will be interesting to see how HP fairs in these competitions because runs a lot of the DWP’s IT.

The HP DWP deals come from the EDS legacy and HP has had difficulty integrating the EDS workforce. Former EDS workers are up-in-arms about cuts to pay and benefits as well as lots of redundancies. The threat of strike action by former EDS workers has not exactly filled the DWP with confidence?

But the Fujitsu deal, which was taken from HP/EDS, could just be the supplier merry-go-round where the main suppliers lose some but win new ones.