Government selects Detica for integration of service agreements abroad
BAE Systems Detica Wins Major IT Contract with the Foreign and Commonwealth Office
The Foreign and Commonwealth Office (FCO) has awarded a six-year IT service integration and management contract, worth up to £80 million, to BAE Systems Detica. This deal marks a strategic partnership aimed at modernising and streamlining the FCO's IT services, improving efficiency, security, and responsiveness to support UK foreign affairs.
BAE Systems Detica, the information services division of BAE Systems, will be responsible for the integration and management of IT services for the FCO. This includes ensuring seamless delivery and support of IT infrastructure, applications, and services that support the FCO’s diplomatic and operational activities worldwide.
The contract has the potential to extend IT service provision to other public bodies, such as the UK Border Agency, the British Council, and the Department for International Development. BAE Systems Detica plans to draw on the wider capability within BAE Systems, combining delivery management and security expertise with the proven processes of BAE Systems Shared Services' integrated service management team, to deliver a solution for the FCO.
This is the first Service Integration and Management (SIAM) contract a UK government department has brought to market following the Cabinet Office's introduction of a multi-source IT supplier strategy including a SIAM function. It's also the first of four contracts to be awarded under the FCO's new IT services procurement framework, with an estimated combined value of up to £350 million.
In 2012, BAE's combined sales shrank 7%, but revenue for the Cyber and Intelligence division, which includes Detica, grew by 16%. This growth highlights the increasing importance of IT services as a revenue source for BAE Systems. According to BAE's annual financial report, the group's strategy includes growing its positions in the cyber and intelligence services markets for governments.
BAE Systems Detica will manage all of the FCO's IT suppliers worldwide and work towards improving and maintaining the continuity of its critical systems. The FCO spokesperson stated that being selected in the face of strong competition from large global IT players demonstrates BAE Systems Detica's ability to bring the right capabilities to bear for the right solution.
This news comes as the FCO unveiled a new framework for IT services related to Oracle's ERP software, worth up to £750 million, in January. Some observers view this framework as a failure on the part of the Cabinet Office to persuade departments to pursue alternative software strategies. However, the success of the BAE Systems Detica contract suggests that the FCO is committed to finding the best solutions for its IT needs.
The report also warns that US government spending cuts are likely to curtail Cyber and Intelligence revenues in 2013. Despite this challenge, BAE Systems Detica remains optimistic about its growth prospects in the commercial cyber and security applications and systems markets.
In summary, the contract positions BAE Systems Detica as a key IT partner for the FCO and potentially other related government bodies, providing comprehensive service integration and management over a six-year period with substantial financial and operational scope. This deal is a significant step forward in the modernisation and streamlining of the FCO's IT services, improving efficiency, security, and responsiveness to support UK foreign affairs.
BAE Systems Detica's responsibility encompasses the integration and management of technology services for the Foreign and Commonwealth Office (FCO), ensuring a seamless delivery and support of infrastructure, applications, and services that support diplomatic and operational activities worldwide.
The partnership between the FCO and BAE Systems Detica aims to modernize the FCO's technology services, with the potential to extend to other public bodies, and is a demonstration of BAE Systems Detica's ability to bring the right capabilities to bear for the right solution.
