| Tuesday, February 15, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Ten Largest IT Services Deals in January 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ed Thomas, Analyst, Ovum | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Eight of the 10 biggest IT services deals announced in January 2011 were awarded by US defense agencies | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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(Source: Ovum’s IT Services Contracts Analytics)
Eight of the 10 biggest IT services deals announced in January 2011 were awarded by US defense agencies, according to data from Ovum’s IT Services Contracts Analytics. Four of those deals were valued at over $1bn, and these mega-deals were awarded to Lockheed Martin, Serco, VT Group and Amsec (a subsidiary of Northrop Grumman) by the Space and Naval Warfare Systems Command (SPAWAR), an organization within the US Navy that designs, develops and deploys advanced communications and information capabilities. The four providers, which have all received initial task orders and will now compete for additional awards, have been tasked with the installation and operational certification of Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) systems aboard Navy platforms on the East and West coasts as well as at locations worldwide. If all options are exercised, work will be completed in January 2016. Alongside the four contracts awarded by SPAWAR, a further four large deals were announced in January by the Space and Naval Warfare Systems Center Pacific, which functions as the headquarters of SPAWAR. SAIC, General Dynamics and Northrop Grumman all secured agreements valued at $200M or more (should all options be exercised), while Booz Allen Hamilton’s deal was worth about $189M, putting it just outside the monthly top 10. Under the terms of these deals, the quartet will examine the science, architecture, engineering, functionality, interface and interoperability of cyberspace operations systems, services and capabilities. Support will include operations and requirements analysis, concept formulation and development, feasibility demonstrations and operational support. Additional efforts will include software design and implementation as well as systems integration, testing and evaluation. Away from the US defense sector, and HP announced a $300M contract win with Fomento De Construcciones y Contratas (FCC), a Spanish public services company which offers construction, energy production and waste management. Under the terms of the deal, HP will provide data center services and end-user workplace management across the FCC organization, which takes in over 50 countries. The only other non-US deal in the top 10 was secured by a team led by Logica and also including Cable & Wireless, Detica and Qinetiq. The consortium was chosen by the UK’s Serious Organised Crime Agency to provide a platform for improved collaboration with its partners and attempt to create efficiencies through consolidation of data centers, networks and desktops.
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