The Scottish Parliament has signed an IT services contract with LogicaCMG that could be worth up to £17.5m over 10 years.
The contract will cover core services including IT security, network support, systems installation and maintenance as well as future IT projects, such as upgrades. It will also cover IT services to regional and constituency level offices in Scotland.
The deal is expected to cut more than a third off the cost of Holyrood’s current core IT services, provided under a seven-year contract with Indian outsourcing giant Wipro. The Logica contract will run for five years, with options to extend it for up to five more one-year terms.
Scottish Parliament chief executive Paul Grice said: “The new contract represents a cost saving of some 35% 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 will come as a boost to Logica, which last week posted first half results showing continued poor performance by its UK arm. But the new public sector deal will not help with Logica UK’s key area of weakness – securing major private sector deals.