Fujitsu set to lose three government outsourcing deals

A number of outsourced contracts with Fujitsu will not be renewed by government over the coming year

A number of outsourced contracts from Fujitsu will not be renewed by the government over the coming year.

The supplier is set to lose three government contracts, including the Cabinet Office, the Treasury and the Department of Environment and Climate Change (DECC).

The Cabinet Office’s Fujitsu Flex outsourcing deal is due to end in January 2015, and Computer Weekly has learnt this will not be renewed.

HM Treasury today posted a tender for three contracts equating to £255m. The Treasury is transitioning its ICT strategy from its single outsourced Fujitsu contract to a new multi-sourced model and is inviting suppliers to bid to provide the services.

Meanwhile, DECC’s Fujitsu contract is due to end in April 2014, but will not be renewed and will instead be replaced by a number of smaller contracts, one of which has already been signed.

When Computer Weekly approached Fujitsu for comment, it responded: “We do not comment on ongoing contracts with our clients in the public or private sector.”

A year ago, Fujitsu was reported to be one of the suppliers labelled as high risk by the government to alert departments that it had performed poorly.

IT transformation means supplier rethink

But Fujitsu is unlikely to be the last supplier to lose out on major outsourcing contracts in government. In an interview with Computer Weekly earlier this year, government CTO Liam Maxwell said a lot of departments across government had contracts that were due to finish in the next couple of years and would not be renewed.

The Cabinet Office is currently undergoing a transformational change of its IT infrastructure, with help from the Government Digital Service (GDS).

Andy Beale, common technology services lead in the office of the CTO at GDS, told Computer Weekly that it is in the middle of an alpha programme to introduce new devices into the Cabinet Office.

Since the project kicked off in October, GDS has helped to put new devices into the hands of 50 Cabinet Office employees. These devices include Android, Apple Mac, Windows 8.1 laptops and cloud-based email.

The alpha phase, which comes to an end on 31 January 2014, is just the first step in the transformational change of Cabinet Office IT, which it claims will save 25% on the current IT offering. The project will last until January 2015, to coincide with the end of the Fujitsu Flex contract.

“Government IT has reached a tipping point,” said Beale. “Cloud and the consumerisation of IT – these things have got to a point where the government needs to embrace that.”

Beale said the transformation project is not being led by the IT, but is focusing on the user needs and embracing trends such as the consumerisation of IT.

“The government has found this naturally hard to adopt due to the contractual landscape of IT,” he said. “Pretty much everything in government IT has been led by procurement, or by IT, or by security – it should be led by the user and what they’re doing in that business or organisation.”

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