Technology central to Royal Mail sell-off plan

Technology is key to Royal Mail's future

The future of Royal Mail’s technology is set to become a key factor in the potential part-privatisation of the organisation, according to reports emerging over the weekend.

The Sunday Telegraph has reported that private equity firm CVC has tabled a £2bn bid for ownership of 30 per cent of Royal Mail, and said the proposal is being favoured by business secretary Lord Mandelson because it includes extensive investment in technology.

Mandelson also told The Politics Show on the BBC that he is keen to pursue the controversial sell-off, but blamed unions for preventing the introduction of new technology, which is seen as essential to Royal Mail’s future.

The postal service last week advertised for IT suppliers to overhaul its web and e-commerce operations, in a deal that could be worth £120m.

Royal Mail chief information officer Robin Dargue is leading a £1.2bn, IT-led transformation programme, although recently the project has led to complaints from some staff affected by an overhaul of the skills within the IT department needed to support the changes.

“The goal is transform to survive – it is that stark,” Dargue told Computing in an interview published in April last year, six months after he took on the job.