Of the $156.99 billion worth of global outsourcing contracts signed (above $200 million) in 2007, $129.00 billion (> 82 percent) worth of contracts came from the public sector, while the rest came from the global private sector.
The larger part ($109.55 billion) of the value of the public-sector deals was distributed in multivendor contracts, the largest of these contracts, at $50 billion, being the U.S. government’s Alliant program that was distributed among 29 service providers. This contract was followed by the U.S. government’s Networx Enterprise telecom program, outsourced to a consortium of AT&T, Qwest and Verizon.
Governments also awarded 30 single-vendor deals worth up to $19.46 billion last year. The largest single-vendor deal by the government was between The U.S. Department of Justice and General Dynamics for $5 billion. General Dynamics beat the number one defense contractor Lockheed Martin in the race for winning the contract that aims to create a secure communication network by linking the justice, homeland security and treasury departments.
Other single-vendor billion dollar contracts awarded by the public sector in 2007 include: Italian Ministry for Agriculture, Food & Forestry Policies-AlmavivA ($1.7 billion), The U.S. Army-Multimax (Harris) ($1 billion) and NASA-Unisys ($1 billion).
Most contracts handed out by the public sector came from American government agencies, with just a few coming in from the U.K. government agencies. The Italian and Swiss government agencies signed one outsourcing deal each with a value greater than $200 million.
So, who emerged as the government’s favorite contractor in the year gone by? Going by single-vendor deals, in terms of the number of contracts bagged, it appears to have been Science Applications International Corporation (SAIC), a systems, technical services and solutions company. The company was awarded the maximum number of contracts (five) by the public sector. In terms of the value of deals, however, SAIC came in second ($2.24 billion) and the first place was bagged by General Dynamics.
AlmavivA of Italy came in at third position in terms of deal value, but CSC and Lockheed Martin, though at fourth and fifth positions respectively, are more consistent favorites of the government. In 2007, they won three single-vendor contracts each, while AlmavivA won only one.
While $129.00 billion worth of contracts (> $200 million) came from the public sector last year, the total value of contracts signed by the private sector, on the other hand, was $27.99 billion.
IBM Global Services seems to have been the favorite of the private sector in 2007. The company bagged deals worth $6.6 billion from the private sector. It had one public-sector deal in Oct. last year, with the U.K.’s Somerset County Council and Taunton Deane Borough Council for $817 million.
| Public Sector's Favorite IT Providers |
| Provider |
No. of Deals |
Value
($ bn) |
| General Dynamics |
1 |
5.00 |
| SAIC |
5 |
2.24 |
| AlmavivA |
1 |
1.70 |
| CSC |
3 |
1.30 |
| Lockheed Martin |
3 |
1.22 |
| Capita |
2 |
1.09 |
| Multimax (Harris) |
1 |
1.00 |
| Unisys |
1 |
1.00 |
| IBM Global Services |
1 |
0.82 |
| EDS |
1 |
0.8 |
| Accenture |
2 |
0.60 |
Parameters: 2007 IT-services deals; integrated IT and BPO deals; >$200 million
Source: Global Services |
