Thames Water is inviting suppliers to tender to join an IT supplier list as it plans a major overhaul of its IT infrastructure.
The move comes after regulator Ofwat published a five-year settlement plan that permitted water companies to make higher water charges than previously expected.
Thames Water CIO Andrew Bilecki told Computer Weekly, "What we can and can't do as a business is much clearer now we know how much money we have."
The company has earmarked its Work and Asset Management Programme (Wamp), which is used to manage allocation of work to staff and contractors, and Geographical Information System (GIS) , which maps system clean-water and waste data from pumping stations, for upgrades.
An on-going infra-structure program has already seen desktops replaced and servers are set to follow.
Bilecki said, "We have a lot of technologies sitting under our current work management system so most of them will be refreshed."
"We have a lot of very old servers passed their sell-by date and need to be brought up to date."
"Looking forward we will certainly be looking at virtualisation on the desk-top and considering cloud computing." Bilecki said.
OFWAT's previous five-year plan prioritised replacing the leaky Victorian-era underground pipe-network.
Thames Water needs to become a more efficient business to finance on-ging work, Bilecki says.
Improvements to the Work and Asset Management System will improve efficiency. It will give a clearer picture of the work being done and how that work should be assigned to staff and contractors. This will help better decision making he said.
Under the new supplier-list companies that deliver projects will be prevented from offering consulting services.
The current IT vendor list consists of TCS, IBM, Logica, HP, Wipro and Accenture.