The House of Commons Public Accounts committee (PAC) has expressed concern that IT supplier EDS might be becoming the dominant supplier of IT services to the Government.
EDS recently won a £20-£25m contract to supply IT services to all crown and county courts in England and Wales.
In a critical report on the outsourcing of social security work by the Government Information Technology Services Agency, PAC says: "We put it to the agency that there were problems associated with having one dominant supplier.
"We recommend that the implications of concentrating sources of supply in one or a few contractors should be given full consideration."
PAC has demanded information from the Government on what business it has outsourced to EDS, saying: "We are surprised that the Treasury were not able to provide more than fragmentary information on the extent of work done by EDS, given the scale of that business."