The Department for Work and Pensions has signed a £59 million contract with Siemens Business Services to supply a payment and accounting system to support 17 million benefits, pensions and allowance claimants.
Part of a modernisation programme, the new system will help the DWP manages Eur160bn (£110bn) payments each year.
Under the deal, which runs run to 2010, Siemens Business Services will be responsible for working with the DWP through the development, delivery and ongoing system management and maintenance of a new Central Payment System (CPS).
Based on the Oracle E-Business Suite, the CPS will integrate with existing DWP systems and processes and will provide improved customer service through faster, more accurate payments and greater accounting controls, the department said.
The DWP runs eight businesses: Jobcentre Plus, the Pension Service, Child Support Agency, Disability and Carers Service, the Health and Safety Commission and Health and Safety Executive, the Rent Service and Debt Management. Major IT problems have been a feature of operational difficulties at the CSA and Jobcentre Plus.
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