The Scottish Parliament has signed a deal with technology-services company LogicaCMG for the support of its IT and communications infrastructure over the next five years.
The contract is worth £1.75m per year and begins in January 2008. The parliament has the option of extending the deal on a yearly basis for a further five years, meaning the value of the contract could eventually total £17.5m over 10 years.
Around £1.1m of the annual costs will cover managed services for core technology needs, such as systems integration, IT security, network support and maintenance. The remainder of the money spent with LogicaCMG will fund consultancy services for specialist IT projects and technology updates.
The contract will cover regional and constituency offices and provide the parliament with a wider range of services both now and in the future.
Scottish Parliament chief executive Paul Grice said the cost savings demonstrate the parliament's commitment to using public funds as effectively as possible.
Holyrood's IT infrastructure is used by Scottish MPs, parliamentary staff and visitors and is essential for the parliament to carry out its functions. The Scottish Parliament previously had a seven-year managed-services deal with Wipro Technologies.