Defra signs £400m deal with IBM

The Department for Environment, Food and Rural Affairs (Defra) has signed a £400m outsourcing deal with IBM to modernise its systems and processes.

The department announced in May that IBM was the preferred bidder for the contract, winning over shortlisted rival Capgemini (Computing, 27 May).

The agreement has now been finalised, and under its terms IBM will provide 'strategic IT and business transformation services', forming the cornerstone of Defra's modernisation programme.

IBM will work with Defra to improve its internal processes, as well as managing, supporting and improving Defra's desktop IT infrastructure and business systems.

The supplier will develop new business systems and an infrastructure to allow Defra to adopt more flexible and remote working practices.

The contract will commence in October, and will run for a minimum of seven years, with an option to extend it to 17 years.

'This is a superb agreement which I am confident will deliver excellent value for money,' said programme director David Myers.

'Defra aims to develop a true strategic partnership with IBM that will bring immense benefits to our customers and staff.'