BT and CSC agree new terms with CfH

(By Richard Holway 10.00pm 14th Apr 09) As a follow up to our BT Global Services Part 6 article yesterday, and indeed the several previous articles on the subject, you will remember that that I made the point that BT were not just negotiating with CfH on the terms of them taking over the 8 Fujitsu sites but also for new terms for London too. BT really wanted to nail the two together. Firstly because they had more bargaining power if the two were linked together. But also because BT really had to quantify their exposure to the NHS ahead of the full year announcements. We suspected, in our earlier report on 2nd April, that this had been achieved. Now, the extremely well respected E-Health Insider has confirmed that both CSC and BT have completed new deals. See CfH on brink of new deals with CSC and BT – E-Health Insider 14th Apr 09

E-Health Insider quote “a spokesperson for CfH” saying:
“The deals cover the three LSP contracts CSC holds for the North, Midlands and East of England and BT’s LSP deal in London. Termed ‘Contract Change Control Three’, they are the third major renegotiation of the LSP contracts since they were signed in 2003.
E-Health Insider can confirm that contract discussions have been successfully concluded with our two main suppliers, BT and CSC, demonstrating their continuing commitment to the National Programme for IT.”

Let’s hope this contains good news for BT (and CSC, come to that). BT needs all good news it can get right now. The City is really spooked over BT and the size of the likely ‘contingencies’ it will need to make on the NHS and other ‘problem’ contracts as well as the cost of general restructuring at BT Global Services.