Several major IT services contracts have been announced in the last 24 hours as vendors aim to close deals before the end of the first quarter.
IBM and EDS both extended big deals in the retail sector, while Computer Sciences secured an AUD 100m ($81m), seven-year extension with Australian mining company BHP Billiton to provide applications management services.
CSC was also awarded an extension to a deal with NASA to provide support services to the Johnson Space Center in Fort Worth, Texas. The extension has a base period of six months followed by five one-month options, which if exercised will be worth $55.4m.
Reports in the Indian business press suggested that IBM was poised to follow up its $800m win with mobile operator Idea Cellular last week, with an even bigger deal with fellow Indian operator Hutchison Essar Ltd. The Economic Times claimed that the two parties were discussing a $1.6bn contract that would see IBM take over management of Hutchison Essar’s IT infrastructure.
Meanwhile, IBM has also been named as the preferred bidder on a 400m pound ($784m), 10-year deal to provide IT and back-office services to Somerset county council and Taunton Deane borough council in the UK. IBM has beaten rival bids from Capita and BT to step up to the negotiating table with the local authorities, with a final deal expected to be signed in June.
Some 800 staff from the two councils are expected to transfer across to IBM as part of a move which will see the vendor take on responsibility for handling services including IT, customer services, human resources, finance, and procurement. The deal could be expanded further if Avon and Somerset police force join the venture.
IBM has confirmed details of a $29m contract win with Indian real estate company DLF to manage its computing infrastructure for the next 10 years, including helpdesk and desktop support.