Atos wins £130m UK hospital deal

Atos has kicked off the year with a £130m, ten-year contract win with University College London Hospital (UCLH).

The £130m value only covers the foundation IT services, such as setting up and running a new private cloud data centre, overhauling and managing the service desk and handling application management, security and SIAM.

There is a second “transformation” framework component to the engagement that will see Atos work with the hospital on driving innovation in architecture and data services, and potentially exploring areas such as IoT and telehealth.

The UK healthcare sector has been the source of some large and interesting opportunities for IT services providers, as the regional trusts look to make big cuts in operating costs in order to free up budget for frontline services.

Cambridge University Hospitals NHS Foundation Trust entered into a ten-year, £200m contract with HPE for infrastructure services in 2013, but following some challenges with elements of the deal – as well as wider problems at the trust that has been placed in “special measures” – it put a new £140m tender out for IT services last October.

The UCLH deal is not Atos’ first win in the healthcare space. It has an 18-year relationship with NHS Scotland and is also a major IT outsourcing partner for the Department of Health. But the UCLH deal could be a springboard to further deals in what looks likely to be a dynamic sector.

Following the Carter Review last year, NHS Trusts are being pushed towards targets of administration costs falling below 7% of total spending by 2018 and below 6% by 2020. The Review also recommended that trusts make a renewed push to pool resources and back office functions with neighbouring hospitals.

The move to shared services is hugely challenging and some recent high-profile initiatives in the wider UK government space have really struggled. But if Atos can deliver on the UCLH deal, it will be handily placed to pitch for new opportunities.