With file pic.
IAIN RAMAGE
Japanese tech giant Fujitsu today faces losing the £4.5million contract to supply IT services to Highland Council’s offices and schools.
The company won a £66million, five-year contract to run the services in 2009 and was awarded an 18-month extension in 2013.
But its performance was repeatedly criticised when project deadlines were missed and complaints were made about the number of computers provided in schools.
And now, officials have recommended that councillors switch provider to an Indian company which has won awards for outsourcing.
The Press and Journal understands that Bangalore-based Wipro Ltd is the preferred option of council officials, rather than extending its contract with Fujitsu for a further seven years.
Councillors do not have to agree with their officials, and are within their rights to ignore their advice. But they usually give significant weight to the recommendation.
Fujitsu staff are based in Inverness and Alness. The current deal is said to be worth £4.5million to the region’s economy.
About 50 of the 140 jobs relate directly to the council contract.
It is uncertain what the future would be for Fujitsu’s Inverness and Alness bases were it to be unsuccessful in its bid for the multimillion-pound deal.
While the company has long term plans for expanding its operations in the Highlands, the existing lease on Fujitsu’s Inverness office expires at the end of February. It won a £66million, five-year contract to run the services in 2009 and was awarded an 18-month extension in 2013.
Its presence in Highland was celebrated earlier this week by prominent business people.
Inverness Chamber of Commerce chief executive Stewart Nicol said: “Wipro win awards for ‘offshoring’ service provision and that, for me, is a major issue if we’re on the verge of awarding such a key contract to an organisation whose ethos is just that.”
It is understood that other bidders dropped out of the tendering process in recent months.
A spokeswoman for the council said its IT programme procedure “will procure a cost effective, value for money, corporate solution that will deliver excellent operational performance and contribute to the continuous improvement of the council.”
She added: “We’re currently involved in commercially confidential procurement processes and an announcement of a formal award of contract is expected to be made around September 12.”
Fujitsu has declined to comment in advance of the council debate.
A spokesman for Wipro Ltd said: “We’re in a competitive tender system and the result’s not out yet, so we cannot comment yet.”
