The Department for Work and Pensions (DWP) has reappointed HP on a £316 million hardware framework deal, known as Desktop 21.
The deal has a complex history. HP was the provider until 2010, in the form of EDS which it bought in 2008. The DWP then replaced the supplier with Fujitsu on the promise of slashing costs and implementing a large programme for thin client computing. But only a year later, in 2011, it tore up Fujitsu's contract for undisclosed reasons. HP took back the work temporarily while the DWP considered its options, and it now has the full deal.
The £316 million new deal sees HP appointed for five years. HP will supply PCs, printing, security and service desk support. Services will be provided to around 140,000 DWP desktop users in over a thousand locations across the country.
It is understood that in the long run, HP may provide thin client PCs across the DWP, as Fujitsu had planned to do until its contract was ended.
The deal renewal is good news for HP, whose original loss of the work in 2010 was seen as a blow - it had helped create £1.5 billion in savings for the DWP over five years.
The DWP said in a statement: "The new contract will deliver both considerable financial savings and a range of modern technologies which will support DWP's strategic objectives and major initiatives such as [future benefits system] Universal Credit."