Atos handed £1.5bn to run IT for UK government-founded pension trust Nest
- Reference: 1615376890
- News link: https://www.theregister.co.uk/2021/03/10/atos_nest_contract/
- Source link:
As well as developing and running business processes for the scheme, operated by the public Nest Corporation of the Department for Work and Pensions (DWP), the IT services and business process outsourcing business will be expected to provide software, networking, and IT infrastructure necessary to run the service.
[1]
NEST was set up by the UK government under the Pensions Act 2008 to support the automatic enrolment of employees. Launched in 2010, it is free for employers to use.
The [2]contract award notice said Atos would be responsible for "the build, delivery and operation of administration services" for the scheme. "The administration services will support auto-enrolment and be delivered primarily via digital channels," it said.
[3]
Listed in the categories that could be procured or subcontracted in the deal are software packages, databases, operating systems, and IT consultancy services.
UK's Health Department desperately seeking service provider to run IT after 'cloud-first' shift [4]READ MORE
The contract will be for a minimum term of 10 years, with an optional extension period of up to five years, and the option of an additional period of up to three years to exit the deal. The total contract value is indicative and covers this potential 18-year period.
The [5]prior information notice for the outsourcing agreement was launched in May 2018. It said that at the expiry of the current contract in 2023, the number of members would be around 12 million with the number of employers remaining at 600,000.
The competition for the new contract [6]formally kicked off in 2019 , when Nest CEO Helen Dean said: "The savings sector, technology and customer expectations have evolved significantly over the past decade and this procurement presents an exciting opportunity for Nest."
Tata Consultancy Services won the initial 10-year contract in 2010 at a value of £600m, [7]according to reports . That deal was extended by three years but is set to come to an end in 2023.
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The DWP has its own approach to outsourcing, renewing [9]contracts for IBM and [10]Accenture for £25m and £20m respectively, without external competition, as it struggles to keep legacy systems up and running. ®
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[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YEj7Lh1MyFglJtrMbd8sVQAAAIs&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[2] https://ted.europa.eu/udl?uri=TED:NOTICE:119426-2021:TEXT:EN:HTML
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YEj7Lh1MyFglJtrMbd8sVQAAAIs&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[4] https://www.theregister.com/2021/02/23/uk_health_department_cloud_it/
[5] https://ted.europa.eu/udl?uri=TED:NOTICE:213426-2018:TEXT:EN:HTML
[6] https://www.theregister.com/2019/05/15/nest/
[7] https://citywire.co.uk/new-model-adviser/news/nest-signs-600-million-tata-it-contract/a448964
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YEj7Lh1MyFglJtrMbd8sVQAAAIs&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[9] https://www.theregister.com/2020/09/09/ibm_dwp_contract/
[10] https://www.theregister.com/2020/08/24/accenture_gets_20_million_dwp/
[11] https://whitepapers.theregister.com/
"this procurement presents an exciting opportunity for Nest"
Um, I think it presents a much more exciting opportunity for Atos, which will be milking NEST for two decades and maybe more if things don't go IBM.
Of course, the £1.5bn will have been spent in 10 years instead of 18, because of all the stuff that will be added, but hey, it's a UK Gov IT project, so nobody will be surprised.
What the actual????
Is there no competent U.K. based firm who has the skills, knowhow and fortitude to run this?
Re: What the actual????
UK IT services giants?
They are all long gone, absorbed into multi-nationals. It was always going to be one of the usual suspects winning this deal.
And each government tender specifies whether it is suitable for SME's, so "Bob and Trev Gardening and IT services" couldn't bid for this.
Re: What the actual????
Crapita? Serco? One of Baroness Hardup's startups?
I think I prefer the French, and look at it this way; a non functioning track and trace was valued at £1.5 billion so 18 years of alleged pensions management looks like value for money in comparison. Of course the final reality could differ by an order of magnitude over 18 years and a variety of governments/leaders.
Re: What the actual????
Ahhh yes, I forgot about Crapita or Serco... probably neither of which would have been a good choice but I bet one of the two bid...
I'm just surprised it didn't go to Matt Hancock's neighbour or a ferry company operating from a takeaway pizza joint.
Re: What the actual????
There is a very long list of companies it shouldn't go to that's for sure
Re: What the actual????
It'll more than likely be Atos IT Services UK Limited who'll be delivering this, with little involvement from the French parent company.
Re: What the actual????
"Is there no competent U.K. based firm who has the skills, knowhow and fortitude to run this?"
Back in the day, BT would have been bidding for this (probably at a loss making price), hoping to make a profit on changes to the spec during the contract lifetime.
stupid question
Did the analysis actually look at the benefits (or not) of running it in house. Sorry, I said it was a stupid question.
Re: stupid question
Better still, scrap the whole thing and give businesses the option to use a regular life company to manage their pensions.
I'll do it for £10
Just give me a ZX Spectrum and 30 minutes