The Department for Work and Pensions (DWP) has signed seven-year application maintenance and development contracts with Capgemini and IBM.
IBM is taking on 60 applications, many of which will support the introduction of Universal Credit, the government’s major new benefits system reform.
Other applications covered by the contract include finance and HR which are also used by a number of other government departments. The value of the IBM contract is likely to be in the range of £50m-£75m a year depending on departmental demand for IT services
IBM says “The contract forms the cornerstone of a long-term strategic relationship between DWP and IBM,” which aims to drive more of the department’s services online. It promises to cut costs by re-using existing IT assets and “utilising IBM analytics expertise to provide greater insight into the Department's data”.
IBM said the contract covered the design, build and implementation of new applications as well as managing the ongoing maintenance of both new and existing applications.
Capgemini, the DWP’s main IT outsourcer, will also offer application maintenance for a wide range of business systems as well as the development of IT prototype systems.
Capgemini has committed to use a network of 170 small and medium specialist IT companies as delivery partners at the DWP.
The Capgemini contract is valued between £5m and £10m a year depending on demand.