The choices are BT’s services division, Cap Gemini Ernst & Young, and an EDS-Accenture consortium. The Revenue estimates the contract will be worth up to £400m a year for an initial 10-years.
The original EDS deal was signed in 1994 and expires in 2004, but the scale of the outsourcing contract has meant the Revenue starting the competition early. It will cover 73,000 desktops, 200 systems, 20 ICL mainframes, and 177 IBM and Hewlett-Packard Unix boxes. Another contract currently held by Accenture is also part of the deal.
Criticisms had been levelled at the Revenue that the cost of bidding for the contract would put potential bidders off, and that it would be likely to stay with EDS.
Shortlisted bidders are ‘expected’ to be invited to tender, with the winner expected to be announced in December next year.
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