IBM, NEC picked for major NSW Transport deals

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IBM, NEC picked for major NSW Transport deals

Final contract negotiations begin.

IBM and NEC have been down selected as preferred tenderers for two IT infrastructure mega-deals spanning the whole NSW transport portfolio.

iTnews reported last week that Transport for NSW had finalised a timeline for the completion of its next generation infrastructure services (NGIS) outsourcing overhaul.

IBM has managed to stem its losses in the public sector market, being picked as first choice for the data centre bundle at Transport, which will see it consolidate and migrate an ad-hoc fleet of data centres and computer rooms into the NSW Government data centre facilities.

IBM has entered into an “initial agreement” with Transport for NSW, a spokesman told iTnews, but final contracts have yet to be signed.

NEC will be put in charge of 25,000 transport desktop PCs and up to 10,000 mobile devices if it continues through to be awarded Transport’s end user computing bundle of work.

“Transport for NSW is currently negotiating the pre-transition agreement with NEC,” said the spokesman.

Roughly 30,000 staff work across all of the Transport agencies, including Roads and Maritime Services, Sydney Trains and NSW Trains.

Values have not been finalised for either deal yet, as contracts await finalisation.

Transport for NSW estimates the full cost of its infrastructure renewal – which includes a network refresh and ongoing telecommunications services – will be roughly $150 million up front and $100 million in operating costs each year on an ongoing basis.

Both deals are expected to be inked before the end of 2014.

Network outsourcing contracts are scheduled to be signed early in 2015.

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