ICL ducks out of £40m Post Office contract

The business will generate around £40m per year for Computacenter, and will be renewable after the first year for a further one or two years.

ICL said it wasn't interested in bidding for the contract.

John Bland, sector director for commercial business at Computacenter, said Computacenter will use its electronic catalogue software, OEDirector, across all 19 of the Post Office's operating arms, including ParcelForce and the former Post Office Counters.

An ICL spokesman said: "We did not bid for this contract because the volume of business is dropping, as are the profit margins."

He added that ICL is working with the Post Office on a range of bespoke solutions for electronic services on a level with its Horizon project, which involves the automation of the nation's post offices. He claimed it is on target for a May completion date.

"These will be complete solutions on a PFI scale, which will include equipment, services, maintenance and training," the spokesman told silicon.com.

He described the Computacenter contract as "shifting boxes".

Computacenter, however, claimed that it will also take responsibility for the Post Office's cutting edge activities. "If the Post Office decides it wants point-of-sale terminals for citizens accessing the web, Computacenter will provide," declared one spokesperson.

Consignia, the new brand for the Post Office, will need a technology platform to roll out a range of electronic services for accessing government information, and extending its banking facilities.

A Consignia spokeswoman told silicon.com that these large-scale projects would probably go out to tender in the usual manner.

She described the company's relationship with ICL as "good and ongoing," following the success of Horizon, but she said there were no further partnerships in the pipeline at the moment.