FSA signs far-reaching outsourcing deals

The Financial Services Authority (FSA) has handed the bulk of its IT to Fujitsu Services in an eight-year, £80m outsourcing contract. The UK's Xansa has also been chosen to handle application systems in a £5.1m deal.

Fujitsu Services took the reins on 1 April and will work on a transformational programme, concentrating on upgrades and modernisation, and then managed services for the financial watchdog.

The FSA said the goal is both to cut costs and have "best in class IS services by September 2008".

The relationship kicked off with all IT and telecoms being handed over to Fujitsu Services, which has also taken on 40 FSA employees under Tupe employment protection regulations.

The first year will see the FSA move to a managed VoIP system which will mean 3,000 new desktop units for end users. Further down the line the FSA wants to use mobile workforce technologies.

Databases and application development will also be covered as part of the agreement, and Fujitsu Services will also use its own data centres.

The FSA said this should allow it to free up office space in Canary Wharf.

The deal includes a no-penalty cancellation option, though only after five years.

The Xansa contract is for core IT applications. Also from 1 April, Xansa has started to manage, support and develop all the FSA's existing operational and regulatory application systems, according to a statement.