Feeds

Phoenix IT survives EDS takeover at DWP

Less money, more years

Top three mobile application threats

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." ®

High performance access to file storage

More from The Register

next story
Putin tells Snowden: Russia conducts no US-style mass surveillance
Gov't is too broke for that, Russian prez says
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Lavabit loses contempt of court appeal over protecting Snowden, customers
Judges rule complaints about government power are too little, too late
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Edward Snowden on his Putin TV appearance: 'Why all the criticism?'
Denies Q&A cameo was meant to slam US, big-up Russia
Banks slap Olympus with £160 MEEELLION lawsuit
Scandal hit camera maker just can't shake off its past
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.