Welsh government signs £70m contract extension with Atos

Five-year contract will last until 2019

The Welsh government has signed a £70m contract with IT services provider Atos that will extend the long-standing relationship between the parties until 2019.

The five-year contract extension begins in 2014 and forms part of the Welsh government's ICT strategy.

The IT services company, which has worked with the Welsh government since 1998, will aim to continue to provide flexibility and manage a "multi-source" environment.

Dame Gillian Morgan, permanent secretary to the Welsh government, said that the deal would enable the government to focus on long-term benefits.

"As well as securing value for money and the services we need for Welsh government, we were particularly keen to ensure that we didn't jeopardise the potential for longer term developments that could provide benefits across the public sector.

"We believe this option gives us the value, service and flexibility we were looking for," she said.

Atos leads the "Merlin" team that works with the Welsh government to focus on major strategic challenges.

The team's aims include "to ensure that the government is a lean and high-performing body, strengthening capability in-house and supporting change throughout the Welsh public sector that is both effective and sustainable".