The UK’s new government may pose threat to many foreign IT companies that have invested on the UK. When the politicians in the UK are much concerned about outsourcing and immigration, IT companies outside Europe banking on the country might face problem, as the new government is examining a few outsourcing contracts of late.

One of those contracts is the Personal Accounts Delivery Authority deal that costs $850-million, signed by the former Labour government with Tata Consultancy Services (TCS) in the beginning of 2010. The new Conservative government is planning to divide the contracts into parts as part of the government’s plan to reduce its spending by almost $9 billion this year.

According to experts, the Tata Consultancy Services contract will probably face hard time, because, country’s chancellor George Osborne has considered the contract as the country’s last massive deal to be signed under the Gordon Brown-led government. The chancellor has decided to cap all future IT contracts at £100 million, but the TCS’ £600-million deal is many times bigger.

Reportedly, the PADA contract was assigned to TSC and signed by the Labour government on March 15, 2010. Apart from this, other IT contracts that are likely to suffer due to the coalition government’s new plan include the National Health Service IT program that sums up to £12.7-billion; £420 million school building contracts; a defense program of £13-billion; and a £1.2-billion ‘e-borders’ immigration service project.