IBM and HP out of the bidding race

Posted By: Religare
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IBM and HP, Two of the world"s largest technology companies decided not to participate in the bidding of one of the biggest outsourcing contracts worth Rs 2,000 crore, to be awarded this year by any Indian government department. An official of the company confirmed that “they deliberately stayed out of the bidding as they are not interested".

After IBM and HP decided to remain out of the bidding, the remaining 5 companies which are - Accenture , Wipro, TCS , HCL Info systems and Mahindra Satyam, are asked to step ahead with the further process by submitting their proposals for the contract and starting negotiations with the UIDAI officials, said, Nandan Nilekani founder of Infosys and the head of UIDAI (Unique Identity Development Authority of India).

These major technology giants had earlier complained to the UIDAI, holding the authority for being partial to the vendors i.e. EMC Corp. And CISCO, as a result, the bidding was postponed last month and some required changes in tender specifications were made following a meeting with the bidding companies.

“It was a decision taken by Global Head Quarters as the conditions don"t match our expectations and things are not turning well between us and authority, after we made the complaint. We don"t see higher chances of winning the bid and want to focus on the projects where we see bright results in the future" an official of the company said, who did not want his name to be disclosed.

The remaining 5 companies submitted their bids on Monday at the UIDAI headquarter at Jeevan Bharti Building, Connaught Place, New Delhi.

It will take about three months for authority to come out with the winner"s name and the company who will win the bid will get 600 million unique ID numbers by 2014 and will manage the entire IT Infrastructure. Only big companies with at least 4,000 employees and the turnover of at least 6,000 Crore in the last three years will be considered eligible for the bidding.

Read more about: ibm, hp, information technology
Story first published: Wednesday, May 18, 2011, 9:30 [IST]
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