DETAILS emerged today of a breakaway of the huge York-based systems and technology arm of facilities management giant Jarvis into a separate company called Agilisys.

Economic chiefs in York are predicting that the new organisation could rapidly become the biggest IT company in the city.

The 280-strong IT services department, which will continue to occupy the entire third floor of Jarvis House in Station Road, is linking up in a joint venture with London firm, netdecisions Holdings Ltd, run by York-educated brothers, Charles and Andrew Mindenhall.

The new independent business is expected to double its combined turnover to £60 million by the end of the year through contracts offering IT solutions to local authorities, health, education and transport sectors.

It will be tapping into the growing demand nationally to meet the Government's targets to "e-enable" public service bodies by 2005.

Agilisys will continue to act as a back-up for the £1 billion turnover Jarvis plc, whose key activities include rail infrastructure maintenance and renewal, road maintenance services and the development of projects in education and health.

"But now we are hoping to market ourselves more aggressively," said Kevin Lavery, former chief executive of Newcastle City Council who is heading up Agilisys - a contraction of "Agile Systems".

"We shall be able to help public bodies update, integrate and manage multiple legacy systems to modernise government, meet e-Government targets and overcome funding difficulties."

Paul Murphy, chief executive of York's Inward Investment Board, said: "This merger is great news. Agilisys could quickly become our biggest IT company and we will do all we can to integrate it into the Science City community."

Even as the finishing touches were being put to the fledgling company's new status, it has been shortlisted by four local authorities for contracts designed to meet the Government's targets.

The range of support services the new firm is offering includes updating existing IT systems, producing and hosting websites (McDonalds has been one client under the Jarvis name) and providing public facilities like interactive televisions, advanced call centres and public kiosks that link into the Internet.

Mr Lavery predicts that his new organisation is bound to generate more jobs at York, but he is wary of specifics at this stage.

He said: "We might win a contract with a local or education authority and take on some of their staff to implement it, but you don't know what the numbers are likely to be until the ink is dried on the contract. However, we do expect to see a lot of new graduate-based jobs in technology."

The joint partnership means the new organisation will benefit from the technical expertise and markets of the 120-staff netdecisions Holdings, which until now has been part of the Digital Housing Group.

At its helm are Charles Mildenhall and his brother, Andrew, originally from Poppleton and former pupils of St Peter's School in York.

Mr Lavery said: "This year Jarvis has become a £1 billion company and its turnover increased from last year to this by 40 per cent. As Jarvis continues to win more PFI contracts, our customer base expands."

Updated: 08:39 Tuesday, April 23, 2002