Aberdeen City Council has awarded Atos Origin a £10 million contract for managed data centre services and a virtualised desktop. It is the first contract that Atos Origin has signed directly with local government in the last five years.

However, a spokesperson for the company said that it does provide services through an existing Government Gateway contract with the Department for Work and Pensions (DWP), which is used by some local government organisations.

Under the five-year contract, Atos Origin will design and implement a virtual desktop environment for 5,000 users at Aberdeen City Council. The work supports Aberdeen City Council’s office relocation and its plans to make its staff more mobile.

Paul Fleming, head of customer service and performance at Aberdeen City, said: “This project will provide greater accessibility and a better service to users of Council IT systems. It is key to the forthcoming staff relocation to the new Marischal College corporate headquarters, and supports the Council’s strategy to create a more flexible and mobile workforce.”

On analyst TechMarketView’s website, research director Georgina O’Toole said that the contract signing was a significant deal as the majority of Atos Origin’s public sector business currently comes from central government, revenue from which is expected to fall significantly following the memorandum of understanding it signed with the Cabinet Office agreeing to a 'single-client' approach to procurement.

“Like all central government SITS [software and IT services] suppliers, Atos will be looking at the broader public sector – including local government - to make up any lost revenues,” O’Toole wrote.