Computing’s announcement that “Royal Mail seeks suppliers for £750m IT transformation plan” hints at the underlying (and increasingly important) link between investment in IT and cash availability.
At the start of July, with Mandelson’s plans for part-privatisation abandoned, Royal Mail described its big three issues as “The need for fairer regulation, the need for a resolution to the large and growing legacy pension deficit and flexible and timely access to capital remain as urgent as before.”
Come the end of July, with the funding apparently now available, Royal Mail is looking for suppliers under three separate agreements adding up to around £750m “which will include systems design, build and implementation, as well as the support and hosting of the postal service’s softwareapplications”.
Talking previously about the transformation required at Royal Mail, postal service minister Pat McFadden had said that “given Royal Mail’s falling revenues and limited profits over the next few years, and pensions fund deficit, clearly Royal Mail will not be able to fund this investment alone. Additional capital will be required and this could be hundreds of millions of pounds, in addition to the funding we have already provided.”
The availability of capital is yet another language that marketers need to learn and bear in mind when trying to find a place in buyers’ plans.
