We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,089 News Articles

DWP signs fifth large deal with HP

HP already runs hosting, integration and desktops at the department

The Department for Work and Pensions (DWP) has inked two major software deals with HP, covering a core benefits system and departmental application support, strengthening its dominant position with five major contracts in the department.

HP already provides desktop services on an interim basis to the department, after the DWP tore up a £300 million contract with Fujitsu only one year in, for undisclosed reasons. HP also runs hosting and integration for the DWP.

The move has already raised questions over the department's commitment to the government promise of broadening its supplier base, as suppliers that lost out on the work had gone through expensive bid processes.

In winning the core benefits system work, which is a major project, HP beat Accenture and Capgemini. For the overall applications support, Accenture and IBM lost out. The new deals are understood to be worth over £100 million a year in total.

The DWP insisted that by adding to the amount of work run by HP it will "reduce the amount of daily and monthly charges paid for the service we receive and will result in savings ", analyst house TechMarketView reported.

Georgina O'Toole, director at TechMarketView, said that the move "looks suspiciously like an admittance that, in times of austerity, large broad-ranging deals with one supplier can help to keep costs down".

While the government had proposed moving to a wider range of suppliers, she said, "spreading the spoils ... looks like a good idea on paper but won't always get the best deal for departments in reality".

Last week, the DWP awarded application development contracts to IBM and Capgemini.


IDG UK Sites

How to watch Sony Xperia Z3 launch live video: press conference IFA 2014

IDG UK Sites

From the iPhone 6 to the iWatch and a new Apple TV we look at the products Apple is set to launch...

IDG UK Sites

Alienware's Area-51 gaming desktop reborn as a powerful Haswell-E-packing triangle

IDG UK Sites

The 7 most ridiculous iPhone 6 rumours: what Apple WON'T reveal on 9 September