The Department of Work and Pensions has picked Fujitsu in a multi billion pound procurement deal, run in association with Buying Solutions to sort out its desktop computers, even though the company faces a ballot of union members to end its long-running dispute with the Unite union.
The two deals valued at £4.5bn have no value put on the DWP's share of the pot.
Fujitsu beat off competition from Cap Gemini and HP Enterprise Systems and ousted EDS, now owned by HP. The hosting contract with EDS has been renewed by DWP.
This six year Fujitsu contract is the single biggest desktop and thin client outsources deal in the UK. The DWP's IT systems grouped into three "towers" - desktop PC services, hosting services, and application maintenance were previously run by supplier EDS, now a part of HP.
Joe Harley, Chief Information Officer at the DWP said, "This is the first in a series of competitions to replace our existing IT and telephony services contracts by 2015 and it sets the tone by delivering significant benefits for the Department and as a framework for Government wide IT".