CSC negotiating $2.3 billion contract with Consignia

October 18, 2002 (IDG News Service)

U.K. postal service operator Consignia PLC has picked a consortium led by Computer Sciences Corp. (CSC) as preferred bidder for a 10-year, $2.3 billion contract to outsource its IT operations, it announced Thursday

Consignia expects to save money and improve support services through outsourcing its IT operations, the company said in a statement. The London company was formed in March 2001 and is wholly owned by the U.K. government.

The postal operator has begun exclusive negotiations with the consortium, the Prism Alliance, to define the terms of the contract, which will cover maintenance of 42,000 desktop computers, management of its server, mainframe and network infrastructure, and professional services supporting IT processes for about 600 applications, it said.

Around 2,000 workers, mostly IT professionals employed by Consignia, will be transferred to the Prism Alliance under the U.K.'s Transfer of Undertakings Protection of Employment legislation. Consignia is still discussing pension and job security guarantees with unions.

The Prism Alliance consists of CSC in El Segundo, Calif., network operator British Telecommunications PLC (BT) in London and Xansa PLC, an IT outsourcing specialist in Hemel Hempstead, England, a CSC statement said.

CSC is no stranger to government outsourcing, having worked on a number of contracts for the U.S. federal government, while Xansa has helped organizations including the U.K. Department for Education and Skills to switch to new IT systems, according to information supplied by the companies.