ITNet wins £17.3m air traffic outsourcing deal

The UK's cash-strapped air traffic services organisation is to outsource its non-core IT systems to ITNet in a £17.3m five-year deal.

National Air Traffic Services (NATS), which is half owned by the government, is expected to make substantial annual savings from the deal in addition to improvements to its infrastructure and administrative service levels.

NATS' entire back-office IT systems, including purchasing, finance, marketing and human resources will be handled by ITNet, which will support the administrative activity of 5,000 air traffic control employees at 50 locations across the UK.

Dr Rob Witty, chief technology and programmes officer at NATS, said in a statement that the deal will focus on cost savings and modernising its administrative IT infrastructure into "business-focused IT".

"ITNet will play an important role in helping us transform our administrative IT services to exploit business efficiencies. The contract highlights the strategic nature of our relationship with ITNet ensuring that our IT infrastructure is increasingly cost-effective, reliable and supports the increasing demands of our users around the clock."

Historical computer problems with NATS' core operational systems have been compounded over the last two years by the slump in air travel since the 11 September terrorist attacks, forcing the Department of Transport to plough millions of pounds into propping up its flagging operations.