TCS, Wipro eye $200 mn BPO deal from UK’s RMG

[Kalyan]

TCS, Wipro eye $200 mn BPO deal from UK's RMG



India's top tech firms TCS and Wipro, apart from several multinational rivals, are preparing to bid for a $200-million outsourcing contract being considered by Britain's public postal service Royal Mail Group (RMG).

The contract is part of a $2-billion technology-led transformation being planned by RMG, even as Britain readies to part-privatise its premier postal service and help it compete better with private sector rivals.

When contacted by ET last week, an RMG official confirmed that some India-based service providers have expressed interest, but declined to comment any further. The last date for submitting the bids is June 25.

"The invite is open to all and not restricted to Europe. I can also confirm that interest has been received from companies based in India. However, the details are confidential," said Tam Curran, senior procurement manager (IT), RMG. "We are currently assuming contract award in early-2010," he added.


The contract is the third in a series of deals worth around $2-3 billion being pursued by offshore service providers, including TCS, Infosys and Wipro, from the UK's state-owned departments.

While TCS has already won a contract from the UK's Child Maintenance and Enforcement Commission (CMEC), another state-owned organisation Transport for London (TFL) has requested tech vendors to bid for an outsourcing contract worth $100 million.

"RMG is seeking to deal with a systems integration and business transformation partner to undertake a programme of transformation of the e-Business capability of the Royal Mail Group, including the design, development, hosting and ongoing operation of all web portals offered by the group," RMG said in a tender document published past month.

The contract could become a much bigger engagement depending upon how it evolves. Government IT spending in the UK is estimated to be $36 billion a year, Bob McDowall, research director at TowerGroup Europe, told ET.

"The transformation may also require the selected partner to migrate from or take responsibility for the existing e-Business operating model of the Royal Mail Group, including technology platform(s) and third party service relationships," RMG added in its document seeking bid from potential vendors. TCS, Wipro and Infosys declined to offer any specific comments.

A review of the UK's public sector IT spending by the country's treasury department earlier this month identified the potential of around $10.6 billion in annual savings.

"Back-office operations and IT, led by Martin Read, recommends better management information, benchmarking and review of costs, and better governance of IT-enabled change programmes to achieve $5.9 billion of savings a year on back office operations, and $4.7 billion of savings a year on IT spending," HM Treasury said in its study titled Operational Efficiency Program.



source : economic times