Training Toolkit

Defra picks IBM for modernisation

Kablenet.com

Published: 28 May 2004 11:30 BST

The UK government department has declared the IT services company is its preferred partner for its modernisation programme

The Department of Environment, Food and Rural Affairs made the announcement on 27 May, 2004. It will now work with IBM on finalising the contract during the coming weeks, and aims to move to new service arrangements later this year.

Under the new arrangements, IBM will manage Defra's desktop IT infrastructure and business systems and develop a range of new business systems.

The company won a competitive tender process in which Capgemini was its sole competitor by the shortlist stage.

Alun Michael, minister for rural affairs, said: "I am very pleased with the outcome of the competition and look forward to developing a close and constructive partnership with IBM.

"I am confident that IBM will play a key role in supporting the department's transformation and improving our service to customers. The agreement will create capacity to accelerate our pace of change, while reducing costs and increasing the quality of service delivered to staff."

Defra's IT spending is currently estimated at £85m per year.

Programme director David Myers said that the contract will run for between seven and 10 years, with an option to extend for a further seven. Its value will be announced when the contract is finalised.

Approximately 330 Defra IT staff will transfer to IBM when the contract begins. A detailed consultation process will take place with the trade unions during the next few weeks.