Indian tech giants to transform UK government?

Outsourcers bidding for key IT projects

By Nick Heath, 16 February 2009 12:21

NEWS

India's tech giants are in the running to manage major new government IT projects in the UK.

Outsourcer TCS is one of three companies being considered to run IT systems for the UK's new £1.7bn Child Maintenance and Enforcement Commission - a reflection of a new resolve among UK MPs to strengthen tech tie-ups with India.

At the launch of a recent all-party parliamentary group to bolster the £10bn annual trade links between the UK and India, there were already signs of progress.

After years of having a small government IT footprint, TCS revealed it is bidding on contracts to work on IT systems in the Department for Work and Pensions, HM Revenue and Customs, the Home Office and Ministry of Justice.

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TCS is hoping to reiterate some of its success it's had transforming Indian government. Here, TCS has almost finished creating a database of electronic medical records for 66 million people, and helped reduce the time it takes to make a new business filing at the Indian Ministry of Government Affairs from 100 days to one hour.

AS Lakshmi, head of UK and Ireland at TCS, told silicon.com: "People have seen the transformation that we have affected in India, where IT has transformed government, and ministers have told us they want to bring that to the UK."

Shadow deputy leader of the House of Commons and group vice chairman Shailesh Vara said: "When it comes to getting contracts for Britain we can't rely on the old links because our competitors - the US, the Germans - are cultivating India and we are not doing that as aggressively.

"If we have an Indian company out there that is doing well and wants to expand then I want that company to come to Britain."

The group - whose members already include former cabinet ministers Patricia Hewitt and Charles Clarke - will introduce executives from outsourcing powerhouses such as HCL, Infosys and TCS to MPs and civil servants, as well as lobbying both Indian and UK parliaments to build more trade and service links.

Along with TCS, large Indian outsourcers such as HCL and Infosys were present at the launch. The group also has the backing of major UK firms such as airline Virgin Atlantic.

Brian Woodford, director of public sector at TCS, was looking to boost its 5,000-plus UK headcount "significantly" with its drive to win public sector contracts.

"We are hoping to grow our public sector work in the UK exponentially," he said.

UK government IT projects regularly run over budget and behind schedule. Woodford hopes the group can heal the fundamental flaws in the UK's approach to government IT that could make it difficult for TCS and its competitors to transplant their Indian success.

He said: "In the UK there's a total lack of connection between policy and programme, between the political leaders and the civil service area and between programme and procurement.

"When you get into the project you have people who are not linked to the policy or the programme negotiating the contracts, you have a silo mentality across the entire value chain, so what chance [is there of] delivery?"

TCS has had first-hand experience of government IT gone wrong. It was a subcontractor for Fujitsu in the National Programme for IT, before Fujitsu left the project after a disagreement with the Department of Health over how much it should be paid.

Woodford said he hoped the group would foster closer engagement between outsourcers, politicians and civil servants at each stage of IT projects.

Comments

There are 5 comments. Join the discussion

  1. 1. Karen Challinor

    forgive me for being a bit thick here but isn't there a fairly strong argument for key UK government IT systems to be procured and supported by people who at least notionally come under the control of the UK government ?

    or does the fact that Mr Brown supports globalisation (translation: it's a lot cheaper when we offshore) outweigh any UK security or UK economy related concerns ?

  2. 2. anonymous

    So much for British Jobs for British People Mr Brown !!!

    In an age of Economic Depression, sending these 'high tech' jobs that are supposed to be the saviour of this country to India to save a few £££ is insanity. Esp. from the goverments.

    Maybe Goverment needs to start building back up the Government IT departments torn down and procured/out sourced/off-shored/sub-contracted/programme managed to death over the last 12 years....

  3. 3. Richard

    Most of these crazy government IT projects should be cancelled:

    The UK does not need to spend yet another £1.7bn on a "Child Maintenance and Enforcement Commission": The whole crazy project should be cancelled.

    If such a project cannot be built using British employees & technologies, there's an even stronger case for scrapping it in order to save precious foreign exchange funds.

    Scrapping the UK government's quangos and useless, intrusive snooping project would bring very worthwhile savings - far better than looking for cheap overseas labour to implement these failed concepts.

  4. 4. Charles Smith

    Take a complex Government IT Project and hand it to a company located thousands of miles away.

    What a recipe for success!

    'Oooh you want a change Sir? Well that wasn't in the original price...' Kerrchinnngg!

  5. 5. Lee

    What I really hate about all this is that I work in the IT market and with the current UK climate, these projects should onshore with UK workers not farmed over to India.

    As usual hypocritical UK goverment.

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