The Channel logo

News

By | John Oates 15th March 2011 12:48

DWP ditches Fujitsu and reappoints HP

U-turns on multi-million pound desktop deal

The Department for Work and Pensions has ripped up its multi-million pound desktop support contract with Fujitsu before the company even started work.

HP lost the contract, one of the UK's biggest, when it was handed to Fujitsu in January last year.

But last Friday Fujitsu had its contract torn up and HP was asked to continue to do the work in the short term.

The original deal was set up by DWP and OGCbuying.solutions and was valued at £4.5bn for desktop solutions across departments. When HP lost the DWP contract it was worth less than 15 per cent of that amount.

A spokeswoman for the DWP said: "The contract was terminated on the 11th; HP is covering in the short term." She was unable to say what would happen next and whether the contract would go out to tender.

Fujitsu sent us the following: "Fujitsu can confirm that it has received notification from the Department for Work and Pensions (DWP) that they wish to bring the desktop contract, awarded in February 2010, to an end. We are not able to provide any further comment at this stage."

HP refused to comment on this story.

Sources within the department who contacted the Reg said Fujitsu had missed three start dates to begin the work. Fujitsu had been scehduled to start work on 31 August 2010.

Staff who had been moved from HP to Fujitsu are now in limbo, but might eventually be expected to move back to their original employer.

The DWP said that this was an issue for the companies concerned, not the department. It was also unable to say whether or not the contract would go out to tender again. ®

comment icon Read 13 comments on this article alert Send corrections

Opinion

Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world