Issue - meetings

[Report of the Director for Customers, Transformation and Resources. To be introduced by the Cabinet Member for Corporate and Civic Services.]

Novation of contract for provision for the provision of the SAP Managed Service.

The Cabinet Member for Civic and Corporate services introduced the report which sought to novate the contract for the SAP managed service to replace the company serving as the Council’s main contractor by another company within the HCL group. This will allow for a continuation of the service for Finance, Payroll, HR and Procurement systems until 15/3/20 when the contract expired.

RESOLVED

1.    To approve the novation of the SAP Managed Service Contract from Axon Solutions Ltd T/A HCL Axon to HCL Technologies UK Ltd under Contract Standing Orders 10.03 and 9.07.1(d).

2.    To note that the contract value over the life of the contract, from the contract start on 16/9/13 until the contract’s current 6 month extension expires on 15/3/20, is £4,124,447.00.

Reasons for decision

To make a decision as Axon Solutions T/A HCL Axon is being wound up as part of a restructure to reduce a complicated structure of the European companies within the HCL group and it will no longer exist. Axon Solutions T/A HCL Axon is proposing to novate the contract from them to another company within the HCL group, HCL Technologies UK Ltd, to allow for a continuation of the service provided. HCL’s parent company in India, HCL Technologies Ltd is, and would remain after the proposed contract novation, a co-contractor with the relevant HCL subsidiary.

Alternative options considered

Axon Solutions Ltd said that we are required to novate the contract as they are winding down the company due to a restructure.

Contract termination was considered but were unable to terminate as we require their services until the contract end.