The Home Office is terminating a £21 million IT services contract with Fujitsu, opting instead to bring the services in-house. The two organisations are currently working on an exit plan, with the service transfer now set to conclude in October, ahead of its original January 2026 renewal date.
This move reflects growing unease within government circles regarding the company’s deeply scrutinised role in the protracted Post Office Horizon scandal. The contract, known as the ITNow Service Desk, was initially signed in 2021. A spokesperson for the Home Office stated that the decision to bring the IT Service Desk in-house is driven by a desire to cut costs and “strengthen control over critical services in the government.”
Staff currently working on the contract at Fujitsu have been informed of their transfer to the Home Office under TUPE (Transfer of Undertakings (Protection of Employment)) regulations. A source indicated that more than 50 staff members are affected. These services are delivered across various regions outside of London, including the East Midlands, the North East, North West, and East of England.
Government contracts with Fujitsu have become highly controversial due to the Japanese company’s central role in the Post Office Horizon scandal, which has had devastating consequences for thousands of subpostmasters and cost UK taxpayers billions of pounds.
In 2024, Fujitsu pledged not to bid for new UK government contracts until the Horizon inquiry had concluded. However, this commitment contained significant caveats, explicitly excluding extensions and additions to existing contracts. According to The Independent, Fujitsu has continued to apply for and be awarded contracts by numerous government departments, including the Home Office, the Ministry of Defence, the Department of Health and Social Care, Social Security Scotland, the Northern Ireland Department of Finance, the Foreign Office, and the British Council.
In April this year, a £125 million contract to transform Land Registration Services for the Northern Ireland Department of Finance was awarded to Fujitsu. While this was a new agreement rather than an extension, the government asserts that the initial procurement process for this contract began before Fujitsu’s self-imposed moratorium on new bids.
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