NS&I awards outsourcing contract to Atos

• New contract will save taxpayers more than £400 million over next seven years
• New contract will grow NS&I’s digital services and improve customer service

NS&I today (20 May 2013) announced that Atos has been awarded an outsourcing contract to deliver customer-facing and back office services to NS&I’s 25 million customers. The contract will sit at the heart of NS&I’s direct business and support its range of simple and straightforward savings products and its payment processing services for government clients.

The new contract will deliver many benefits to NS&I’s customers. A key area is the focus on digital channels, meaning NS&I and Atos will help customers make the switch to digital. NS&I has grown its direct sales channels for a number of years and this new contract will deliver significant improvements to them. This will include the addition of a mobile-optimised website and apps; web chat and co-browsing that can help to guide customers through the website. However, just as importantly, it will focus on further improving the current online experience to ensure customers will find managing their money online with NS&I as simple and straightforward as possible.

Over the course of the next seven years the new contract will save British taxpayers more than £400 million by increasing customer use of direct sales channels; improvements in technology and processes which deliver cost savings; and supporting the growth of NS&I’s leveraging activity.

NS&I first outsourced its operations to Siemens Business Services in 1999 – the company was subsequently acquired by Atos in July 2011. This outsourcing contract is estimated on a ‘like-for-like’ basis, stripping out the impact of growth and inflation, to have reduced NS&I’s core operating costs by 55% – equating to some £530 million in cost savings.

In 2011 NS&I began a formal re-tender for this contract and in February 2012 shortlisted three suppliers: Atos, Capita and Hewlett-Packard. Following an extremely thorough tender process the contract has now been awarded to Atos. The final decision on awarding the contract lay with NS&I’s Minister, the Economic Secretary to the Treasury, Sajid Javid MP. Given the size of the contract the Cabinet Office was also involved throughout the tender process and has given full approval to the decision.

NS&I remains committed to its three UK regional locations and is working with Atos to ensure Atos employees are kept fully informed.

Sajid Javid MP, Economic Secretary to the Treasury, said:

“NS&I has been at the heart of the UK savings sector for over 150 years. This new contract will ensure its millions of customers continue to enjoy excellent customer service and the benefits of its straightforward, accessible savings products.

“Taxpayers across the country will also benefit as the contract will deliver a saving of over £400 million by 2021 – building on the £530 million already saved under the current contract.”

Jane Platt, Chief Executive, NS&I, said:

“The new contract will ensure we can deliver our vision of enhancing further the services we offer to savers over the next seven years. Atos has the skills, capability and commitment to deliver this and, crucially, can do so in a way that delivers for taxpayers. I would like to congratulate Atos on winning the contract and also thank both Capita and Hewlett-Packard for the time and energy they invested in the re-tender process.”

Ursula Morgenstern, UK & Ireland Chief Executive Officer, Atos, said:

“We are delighted to have been re-selected as NS&I’s strategic partner. We understand the importance of user-friendly digital channels and the need to keep pace with emerging technologies to ensure a truly customer focused service, making NS&I easy to do business with. We bring vast experience in this area as well as in-depth knowledge of the needs of the business. We are excited to continue our work with the NS&I team and look forward to the journey ahead.”

NS&I has a detailed transition plan in place to ensure that the move from the current to the new contract, which begins on 1 April next year, is seamless with no impact on our customers.

Notes to Editors

1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to over 25 million customers. All products offer 100% capital security because NS&I is backed by HM Treasury.

2. This procurement was supported by the Commercial Models Team, part of the Cabinet Office Efficiency and Reform Group. Led by Executive Director, Ed Welsh, former co-head of Global Business Services for Rothschild, the team is equipped with business expertise to help Government departments get better deals for taxpayers. For further information please see: https://www.gov.uk/government/organisations/efficiency-and-reform-group.

3. Atos SE (Societas Europaea) is an international information technology services company with annual 2012 revenue of EUR 8.8 billion and 76,400 employees in 47 countries. Serving a global client base, it delivers Hi-Tech Transactional Services, Consulting & Technology Services, Systems Integration and Managed Services. With its deep technology expertise and industry knowledge, it works with clients across the following market sectors: Manufacturing, Retail & Services; Public sector, Healthcare & Transports; Financial Services; Telecoms, Media & Technology; Energy & Utilities.

Atos is focused on business technology that powers progress and helps organisations to create their firm of the future. It is the Worldwide Information Technology Partner for the Olympic and Paralympic Games and is quoted on the NYSE Euronext Paris market. Atos operates under the brands Atos, Atos Consulting & Technology Services, Atos Worldline and Atos Worldgrid.