UK govt says revisiting IT contracts

British Prime Minister David Cameron today said his government’s decision to review certain information technology (IT) outsourcing contracts was primarily due to economic compulsions.

Cameron admitted that the British government was relooking at some of the IT outsourcing contracts as it faced a huge budget deficit and wanted to cut costs.

“In terms of contract and value of money, we have a big budget deficit from the past government. Hence, we are taking a relook at the contracts,” he said, adding the incumbent government had to look at every contract in terms of costs and value for money.

He, however, said that Britain was one of the most progressive and open countries in Europe, in terms of working with companies like Infosys for IT outsourcing services. “If you look at any other European economy, I think you will be very hard-pressed to find other economies that are happy to welcome so many overseas firms to come and invest.”

Reports had earlier said the coalition government in the UK was reviewing at least six outsourcing contracts, including the $850-million pension administration deal signed by the erstwhile Labour government with Tata Consultancy Services .