Department for Work and Pensions Awards Seven-Year IT Contract to Capgemini UK

Regulatory News:

The Department for Work and Pensions (DWP) is anticipating the faster deployment of new IT systems, major gains in productivity and significant cost savings with the award of a seven-year IT contract to Capgemini UK plc (Paris:CAP). The DWP is committed to effecting one of the biggest transformations ever undertaken in Britain's welfare and benefits regime while simultaneously meeting stringent budget targets, and the Capgemini contract will have a key role in achieving both objectives. Capgemini UK employs some 8,000 people at 17 sites across Britain and is part of the Capgemini Group, one of the world's foremost providers of consulting, technology and outsourcing services.

The contract covers the provision and maintenance of a wide range of business applications as well as the development of IT prototypes to support important aspects of the welfare systems of the future, providing IT solutions which together will be used by the DWP's 100,000-plus employees at its offices across the UK.

Capgemini won the contract against bids from other UK, European and global companies because of its transformational application lifecycle approach, convincing and cost-effective proposals, commitment to transparent and predictable pricing based on results achieved, collaborative style of working and its track record of successful transformational projects at the DWP and other UK government departments. Capgemini was also able to give the DWP firm assurances of significant quantitative gains in productivity for both IT development and maintenance. A further positive factor was Capgemini's plan to harness its network of 170 small and medium specialist IT companies as delivery partners at the DWP, an approach successfully used by the company on other major UK government contracts.

Bev D'Alessio, Vice President of Welfare Sector at Capgemini UK, said: 'We are naturally delighted with this significant expansion of our successful relationship with the DWP, and look forward to demonstrating once again why we are the IT partner of choice for organisations seeking radical transformation carried out rapidly and effectively.'

The Capgemini contract reflects a move by the DWP to broaden its IT sourcing as it seeks the best talent and experience from across the IT world to help it meet its transformational and budget objectives. Work under the contract starts immediately, led by a team at Capgemini's Accelerated Development Centre¹ in Sale, Cheshire linked to a development environment at the company's high-sustainability Merlin Data Centre in Swindon, Wiltshire. Capgemini teams will also be based at DWP locations in the North of England.

The value of the Capgemini contract could be in the range of £5m - £10m per annum dependant on Departmental demand for IT services.

The new contract is seen as a model for systems delivery and transformation, and will be available for use by other UK government departments within certain limits.

About Capgemini

With around 115,000 people in 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2010 global revenues of EUR 8.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience^TM, and draws on Rightshore ^®, its worldwide delivery model.

Learn more about us at www.capgemini.com.

Rightshore^® is a trademark belonging to Capgemini

¹ Capgemini has a global, ready-to-roll network of 24 development centres, equipped with on-demand facilities and leading edge methods and tools to kick-start a project in less than 24 hours