Feeds

Phoenix IT survives EDS takeover at DWP

Less money, more years

Choosing a cloud hosting partner with confidence

Phoenix IT has emerged from contract negotiations with EDS Global Field Services to supply desktop maintenance and support at Department of Work and Pension with an £8m plum.

That's what the Northampton-based computer services firm reckons the volume-prices gig will be worth this year. Unfortunately, the deal used to be worth £10.5m a year for Phoenix IT when BT was its lead contractor at the DWP, Kate Hanaghan of the analyst firm Ovum Holway notes.

On the upside, Phoenix now has a five-year contract for the DWP, as opposed to the previous terms of 12-18 months. Also Phoenix IT will also earn around £2m a year for its part in the networking element of the contract, run by BT, says Hanaghan.

However, price cuts for some activities are built-in to future years. And the DWP is expected to kick off a technology refresh in 2007, which will also mean even lower revenues next year. Hanaghan estimates the value of the contract will drop over the years to around £5m annually.

Phoenix has, she says, been "working hard over the past six months to improve service delivery methodologies in order to bring costs down ahead of this anticipated takeover by EDS. This should provide a cushion as it takes on this less profitable arrangement." ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.