£850m IT outsourcing deal key to Defra overhaul

The Department for Environment, Food and Rural Affairs (Defra) wants a massive 10-year £850m IT outsourcing deal to underpin a new long-term departmental strategy currently under review.

‘Developing Defra’ is a review of the department’s objectives that will focus on improving interaction with customers, other agencies and commercial organisations, and central to this is the e-enablement of its IT infrastructure.

But the union representing Defra IT staff is already warning the outsourcing move could lead to another government IT disaster.

Suppliers are currently being invited to bid for the contract, with a shortlist due to be published in July. The contract, which could be extended to 17 years, is expected to start next year and will involve the transfer of around 600 Guildford-based IT staff.

Public and Commercial Services (PCS) Union spokesman Alex Flynn told silicon.com the union will be meeting with Defra staff next week.

“We believe the IT function should be kept in-house and that is not just being dogmatic. Strategically, outsourcing the IT won’t be cost effective and won’t deliver what Defra wants it to and I could point to many other government IT outsourcing disasters as evidence.”

A prospectus issued to suppliers this week stated: “Defra recognises that the IT required to support its challenging change programme cannot be delivered in one bound and that significant enhancement to overall capabilities is required if successful delivery of its strategy is to be assured.”

In addition to managing Defra’s existing infrastructure one of the key priorities that the winning supplier will have to address is the creation of an 'information hub' that will allow inter-working with other government departments, agencies and commercial organisations.

Management of emergency situations while maintaining normal IT service during episodes such as the foot and mouth crisis will also be critical, according to the document.

The cost of the contract has risen from an estimated £350m last year but Alun Michael, Minister of State for Rural Affairs and Urban Quality of Life said in a statement that the scale of the project reflects the transformation of the department.

“We are therefore seeking a strategic supplier for the delivery of information technology and business change services to work with us in a collaborative way, help us provide better, joined-up services to our customers and generate significant opportunities for the professional development of our staff.”