Ethical Hacking News
Atos has secured a lucrative deal worth £474.4 million ($612 million) to build systems for the UK state bank, National Savings and Investments (NS&I), without competition. The decision has raised questions about the implications for the project's timeline and Atos' long-term prospects.
Atos, a French outsourcer, has secured a lucrative contract worth £474.4 million ($612 million) to build systems for UK state bank National Savings and Investments (NS&I). The deal was awarded without competition due to "technical reasons" related to the complexity of the project. Atos, as the incumbent service provider, is also providing existing NS&I core banking platforms, making it difficult for another supplier to integrate them with new systems. The decision has raised concerns about the value for money of Atos' services and its ability to deliver complex IT projects amid financial difficulties. NS&I's procurement process has been criticized for not following traditional competitive bidding procedures, sparking debate about the role of Atos in the project.
Atos, a French outsourcer currently navigating a period of financial restructuring, has successfully secured a lucrative contract to build systems for the UK state bank, National Savings and Investments (NS&I). The deal, worth a staggering £474.4 million ($612 million), was awarded without competition, leaving many questions about the implications for the project's timeline and Atos' long-term prospects.
In December 2023, NS&I announced that it had extended its outsourcing agreement with Atos by three years, from March 2025 to March 2028. The new deal covers core banking, payment, reporting, and business-to-business services, effectively extending the original £600 million contract awarded in 2013.
The decision to award the contract without competition was made due to "technical reasons," according to NS&I's procurement notice. Atos, as the incumbent service provider, is also the provider of the existing NS&I core banking platforms. Disaggregating these systems at the same time as building and deploying a new core banking instance would be "sufficiently complex" that it could only be carried out by Atos IT Services UK without significant disruption to NS&I customers.
This decision has raised eyebrows among observers, who have long questioned the value for money of Atos' services. The company, which has struggled with financial difficulties in recent years, secured a rescue package worth €1.675 billion ($1.82 billion) in July 2024. The French government has also expressed interest in purchasing key assets of the company.
NS&I's decision to award the contract without competition has sparked debate about the procurement process and the role of Atos in the project. In January, Dax Harkins, NS&I accounting officer and chief executive, acknowledged that "un-picking and re-integrating 25 years of complex IT infrastructure" had proven more challenging than anticipated.
To address these challenges, NS&I is implementing a recovery plan involving re-negotiated elements of its business transformation timeline. The company aims to deliver the new solutions across all packages by Autumn 2028.
Atos has denied Space Bears' ransomware claims, with Harkins noting that "only one supplier is capable of delivering the requirement" for the contract. However, critics have questioned whether this was a valid reason to award the contract without competition.
The Rainbow Program, which includes several high-profile outsourcing deals, has been shrouded in controversy. In December 2023, IBM won a £99.8 million (c $116 million) deal for "Digital Experience and Digital Enablement" component. French outsourcer Sopra Steria secured the work for "Customer Contact Centre and Operations" in a £276 million (c $322 million) project.
The government's Infrastructure and Projects Authority annual report noted that the Rainbow Program remained at a red rating for the year 2023/24, meaning "successful delivery of the project appears to be unachievable."
Atos' financial difficulties have raised concerns about its ability to deliver on the contract. In June 2024, the company set a deadline for shareholders to opt for an Onepoint-led consortium or Daniel Křetínský's EPEI rescue plan.
In this context, Atos' recent deal with NS&I takes on new significance. While it is a welcome boost to the company's finances, it also raises questions about its long-term prospects and ability to deliver complex IT projects.
As Atos continues to navigate the challenges of its financial restructuring, one thing is clear: the company has found a way to secure an important source of revenue. But will this be enough to help it overcome its financial difficulties and emerge from its period of turmoil with its reputation intact?
Related Information:
https://www.ethicalhackingnews.com/articles/The-Rainbow-Contract-Conundrum-Atos-Scoops-Up-4744-Million-UK-State-Bank-Deal-Without-Competition-ehn.shtml
https://go.theregister.com/feed/www.theregister.com/2025/03/07/troubled_french_outsourcer_atos_finds/
Published: Fri Mar 7 03:59:05 2025 by llama3.2 3B Q4_K_M
