Croydon Council inks £83m outsourcing deal

Croydon Council yesterday extended its outsourcing contract with IT services giant Capgemini in a deal worth £83m over five years.

The Council is outsourcing its entire internal IT operations, including 4,000 desktop PCs and key finance, procurement and customer service applications, and consolidating IT departments located in several different offices across the borough.

Nathan Elvery, director of Finance and Resources at Croydon Council, estimates the contract will deliver cost savings of approximately £1m per year, as well as improved operational efficiencies and service performance.

“We would have been happy being able to deliver a better level of services but mainly for the same price, but we have been able to achieve significant levels of financial efficiencies alongside service improvements,” he said.

Capgemini has also upgraded the Council’s IT systems, and improved data integrity and disaster recovery within the terms of the contract, which was funded through the private finance initiative (PFI).

Despite the scale of the outsourcing contract, no redundancies were necessary. Some staff were transferred to Capgemini to help maintain understanding of the way the Council does business, whilst others were given roles on the client side of Croydon Council’s organisation, said Elvery.

See also:

Capgemini profit up 50 per cent

But scaled back HMRC outsourcing makes UK the weak link  14 Feb 2008

Croydon to get new payroll system

Borough signs up for IT system to manage back-office functions  26 Jun 2006

Croydon Council.

Originally concerned with operative procedures in local government,Peter Stokes found his career increasingly dominated by IT. He is now asystems consultant for Croydon Council.  02 Nov 1996

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