The HP’s grip on a flagship Ministry of Defense deal could be weakening after rival CSC took over the pay and pensions administration services of the service personnel and veterans agency. Since 2005 the SPVA contract is held since it is acquired by HP, it is part of the Defense Information Infrastructure deal that EDS. With the Xafinity Paymaster the HP bid for a renewal of the SPVA contract in partnership however CSC was chosen as the preferred bidder.
NelsonHall an analyst stated that the HP has been providing payroll services to the UK military since year 1997 as a result of its acquired EDS heritage. The HP’s unsuccessful attempt to renew the contract is not about poor performance. The SPVA talks of excellent team working of both MoD and HP and the agency’s six strategic performance priorities were all met or surpassed. The CSC is not the obvious winner for a major payroll business process outsourcing award. Most notably within a back-office BPO and IT services contract for NASA, it has a very small presence in HR BPO services, most notably within a back-office BPO and IT decision. The CSC’s relationship with the UK government has been stretched over the failure of the two parties to reach agreement over a memorandum of understanding for the continuation of the NHS National Program local service provider contract.
With the massive DII contract and industry source stated that the SPVA deal is small in comparison, however it is a significant weakening of HP’s grip. He said that most of the large contracts that EDS won are up for renewal in the next 14 to 30 months.
REFERENCE:
http://www.computerweekly.com/news/2240148555/HP-losing-grip-if-EDFs-MoD-bedrock
