Post Office signs IBM for IT overhaul

An MP has revealed a contract between the Post Office and IBM which appears to signal the IT services giant is set to transform the Post Office’s IT.

Speaking at an adjournment motion on a controversial accounting system used by Post Office, Andrew James Bridgen, MP for North West Leicestershire, said he had an email that proved the Post Office is looking to replace the system through a deal with IBM

The deal is part of a wider transformation of Post Office IT, costing hundreds of millions of pounds. A tender titled Post Office IT and Change Transformation Programme was published in late 2013 in the Official Journal of the European Union (EU).

The Post Office confirmed IBM had won the deal, which is the front office component. of a wider set of contracts. “As part of our wider transformation programme we are developing our IT and telecoms services and systems across our business, in order to grow and develop our business to ensure we meet our customers changing needs.

The tender said: “The Post Office has undertaken a review of the existing supply chain and has chosen a strategic IT supply chain and optimal target operating model that adopt industry standards and good practice.

"The model chosen allows the provision of Service Towers being managed by a service integrator and service desk (SISD) provider.

Speaking at a recent IT industry event, Post Office CEO Paula Vennells spoke about the importance of IT to the Post Office and said there will be a major IT transformation over the next two years. IBM already provides a banking system to Post Office.