According to the news acquired by Offshoreoutsourcingworld from Computerworld, "San Diego County officials today approved a $667 million IT outsourcing contract with Northrop Grumman Information Technology and hope to complete a transition to the new contractor by year's end. "
Overseeing this major shift in outsourcing contractors is Michael Moore, CIO for San Diego County, who took that post three years ago -- well after the initial seven-year contract with Computer Sciences Corp. was signed. Northrop Grumman won the new contract after it was put out to bid.
The deal made today covers IT services for the 17,000-employee county government, which operates on a $4 billion budget.
To complete the transition, Moore will be relying on a lengthy list of provisions approved in the 1999 contract that detail the “disentanglement” process. This spells out how the outgoing and incoming contractors are to cooperate regarding access to tools, assets and personnel. The first milestone will be the transition of the help desk in April, followed by applications, desktops and networks, and finally a transition of the data center in October to Northrop Grumman.
Input expects state and local spending on IT outsourcing to grow from $10 billion in 2005 to $18 billion by 2010, with a compound annual growth rate of 12%.
The county of San Diego awarded one of the first big local-government outsourcing contracts in the nation in 1999 to Computer Sciences Corp. The county’s board of supervisors today will consider a different vendor, Northrop Grumman, after rebidding the work. At stake is a seven-year contract to manage IT for the 17,000-employee county government, which operates on a $4 billion budget.
For details read here.
The article is sponsored by A-1 Technology Inc, dealing in offshore outsourcing and offshore software development.
