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Thursday 12 July 2018

Atos wins big at Defra

Atos logoAtos has won the Defra UnITY programme hosting and application support contract. With the ‘tower model’ no longer supported centrally, in a subtle change of wording, the department refers to the contract as one of a “suite” that will replace the existing IT services delivered by two separate suppliers under the legacy arrangements – Capgemini at the Environment Agency and IBM at Defra.

Atos has every reason to celebrate. As other suppliers to Whitehall have watched their central government revenues nosedive due to the disaggregation of their mega ICT outsourcing deals, it has maintained a steady ship and positioned as an alternative to the trio that dominated the sector for a long time – Capgemini, DXC, and Fujitsu; so much so, that – according to our latest PublicSectorViews analysis due to be published this month, it is now the leading supplier of software and IT services to central government.

This latest deal is set to further stretch its lead. Under the core contract, Atos will deliver standard application support & hosting functions (DC facilities management services, infrastructure services, platform services, app support & operations and service management). But, it has the potential to grow the contract value to a maximum of £135m over a 6-year period (including the one-year extension option), by adding project work, bringing other Defra agencies into the contract, or supporting new applications.

According to the contract tender, there were seven bidders for this deal. But it would have been difficult – or nigh on impossible – to attract smaller suppliers to the table. SMEs like Littlefish (see Littlefish keeping up the momentum and work back) have had great success winning IT managed services deals with smaller organisations like The Pensions Ombudsman or the Single Source Regulations Office (SSRO). However, in combining the app support & hosting requirements of Defra, the Environment Agency, Natural England, the Animal & Plant Health Agency, the Marine Management Organisation, and the Rural Payments Agency, the size of the contract was such that it would have been out of reach for all but the larger players.

Posted by Georgina O'Toole at '09:49' - Tagged: public+sector   centralgovernment   contract   hosting   ApplicationServices   disaggregation  

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