TCS, Cognizant among vendors to bag UK's Network Rail deal

UK-based Network Rail has roped in five IT vendors, including TCS, Cognizant and Accenture to design, build and manage its IT infrastructure in a deal estimated at GBP 350 million.

"With more than 270 individual IT suppliers, Network Rail manages a variety of systems of varying complexity, including some that were designed as far back as the 1970s. Network Rail has signed framework agreements with five major IT suppliers as it begins to simplify its computing relationships," Network Rail on Wednesday said in a statement.

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The new "zero-sum" IT solutions and system integrator framework agreements with Accenture, BAE Systems Detica, Cognizant, CSC and Tata Consultancy Services, it added.

Network Rail is the owner (not for dividend) and operator of Britain's railway infrastructure, which includes tracks, signals, tunnels, bridges, level crossings and stations. The agreements are designed to allow suppliers to take more ownership of designing, building and implementing IT solutions to support Network Rail, it said.

Though financial details of the deal were not disclosed, sources said the deal size is worth over GBP 350 million. When contacted, Network Rail in an e-mailed response said, "This is no commitment, zero-sum framework agreement. There is potential for a certain level of money to change hands, but equally, the companies concerned know they may not get that work."

"We have a mixture of outsourced and in-house IT suppliers. The previous systems integration framework, which this replaces, had 16 suppliers. What this (deal) does is share the delivery risk more equally between Network Rail and our suppliers," it added.

The deal assumes significance as demand for IT services in the European region is almost flat amid economic uncertainties. The region accounts for about 20-30 percent of the revenues of the Indian IT sector. "By creating this framework, we will be able to scale more flexibly our resources to meet demand, while retaining our vital assurance role," Network Rail chief information officer Susan Cooklin said.