CSC expected to win $2.3bn UK Post Office deal
It's a biggie
Computer Sciences Corp (CSC) has been selected as the preferred supplier in a proposed 1.5bn pound ($2.3bn) IT outsourcing project with Consignia Plc, the operating arm of the UK's Post Office.
Under the terms of the proposed deal, CSC has entered "exclusive negotiations" to act as the prime contractor for London, UK-based Consignia in the 10-year project, through which CSC will take over about 2,000 staff working within the organization's IT deparment. As part of the deal, CSC would form partnerships with telecommunications firm BT Group and outsourcing firm Xansa Plc through a scheme called the Prism Alliance.
It is likely that the project would involve CSC taking over maintenance of approximately 42,000 Consignia desktop computers, management and development of its server, mainframe and network infrastructure, as well as consulting services around the company's IT systems. Meanwhile, BT is likely to provide the network infrastructure, and Xansa would provide additional IT support to CSC through application maintenance of around 600 applications, as well as certain back-office support services.
Should the deal get the green light, it would rank as the third largest IT services contract of 2002, according to ComputerWire's Contract Tracking Service, behind IBM Corp's $4bn deal with American Express in April, and Accenture's $2.6bn deal with AT&T Corp in January.