Network Rail studies IT outsourcing deal

Rail operator seeks partner in transformation plan

Network Rail is considering outsourcing its IT operations as part of a major transformation programme.

The organisation, which owns and operates the nation’s rail infrastructure, wants to appoint a third party to manage enterprise operations across 1,200 of its sites.

The five-year contract will include management of Network Rail’s data centres and computer systems, according to a procurement document issued by the organisation.

‘Network Rail is undertaking a transformation programme which includes rationalisation of the delivery of infrastructure services,’ says the document.

‘This requirement is to find an outsourcing partner for enterprise operations, distributed computing and network services who can provide capability and flexibility to support the Network Rail organisation through its transformation.’

The transformation programme is intended to provide a new IT infrastructure to rationalise Network Rail’s services.

AMR Research analyst Nigel Montgomery says such outsourcing deals are put in place to reduce costs.

‘It appears Network Rail is planning to consolidate and centralise its IT infrastructure. Outsourcing can reduce the duplication of services and improve services while cutting IT costs,’ he said.

‘Many organisations are looking to outsourcing, but not on such a large scale. Network Rail appears to be taking an accelerated approach.’

A spokesman for the Association of Train Operating Companies (Atoc) says the outsourcing of IT services is an internal matter for Network Rail.

‘Only if the service is compromised would we make our views known to Network Rail,’ he said.

Rail expert Christian Wolmar said: ‘Technology has the ability to help Network Rail streamline costs, which can then be re-invested in the network.’

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