New IT contract brings cost saving for parliament

29/08/2007

A contract to provide information technology (IT) support services to the Scottish Parliament was signed today between the Parliament and LogicaCMG UK Ltd.

The contract, which was approved by the Scottish Parliamentary Corporate Body (SPCB), provides IT services to enable the Parliament to carry out its functions. The contract will cover core services such as IT security, network support, systems installation and maintenance as well as the potential to deliver future IT projects, such as those to update technology. It will also cover IT services that support business at constituency and regional offices and provide the Parliament with access to a wider range of services to meet its future needs.

The contract was signed today by Parliament Chief Executive Paul Grice and Chris George, Director of Devolved Government and Health for LogicaCMG UK Ltd.

Mr Grice said: “We were looking for proven ability to manage our existing services and also the capability to support our future technology needs. LogicaCMG’s bid met all of our criteria and offered the best overall value from all those we considered.

“The new contract represents a cost saving of some 35 percent for the provision of the Parliament’s core IT support services when compared to the current arrangement and underscores the Parliament’s commitment to use public funds as cost effectively as possible.”

The contract, which will come into effect in January 2008, is worth an estimated £1.75 million per year and will be paid from existing budgets. The contract is being let for an initial period of five years with the option to extend on a yearly basis for an additional five years. The total value of the contract over the ten year period (comprising the five year contract and the five possible one year extensions) is an estimated £17.5 million . The contract replaces a previous seven-year contract with Wipro Technologies Ltd.

The award of the contract follows a comprehensive and competitive tender process in line with Scottish public contract regulations, in which 32 suppliers registered an interest in the contract.

A British-Dutch company, LogicaCMG UK Ltd has a strong base in Scotland, with offices in Aberdeen, Edinburgh and Glasgow. Focusing on financial services, oil & gas, public sector, transport and utilities, their clients include: Bank of Scotland, BP, NHS Scotland, Royal Bank of Scotland, Scottish & Southern Energy, Scottish Borders Council, Scottish Executive, ScottishPower and Transport Scotland.

Background information

Of the estimated contract value of £1.75 million per year, some £1.1 million will cover core services, such as IT security, network support, systems installation and maintenance. This represents a 35 percent reduction on the current cost of £1.7 million for core IT services support.

The remainder of the £1.75m covered in the new contract will cover the estimated cost of specialist IT projects, such as those to update technology. The total value of the contract over the ten year period is an estimated £17.5 million if the annual options to extend it are taken up.

LogicaCMG is a major international IT and business services company. It employs around 40,000 people in 41 countries.

The company provides business consulting, systems integration and IT and business process outsourcing across diverse markets including telecoms and media, financial services, energy and utilities, industry, distribution and transport and the public sector.

Headquartered in Europe, LogicaCMG is listed on both the London Stock Exchange and Euronext (Amsterdam) and traded on the Xternal List of the Nordic Exchange in Stockholm. For more information go to www.logicacmg.com.

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