By Jaimie Kaffash
23 December 2009
Essex County Council has signed an eight-year outsourcing deal with IBM but there are still doubts over its cost.
The agreement, which was widely expected, will result in IBM providing customer services and back-office functions. The council hopes this will divert £300m from these areas to invest in front-line services.
The leader of Essex County Council, Lord Hanningfield, said: ‘Working [with IBM] will help to keep council tax low and deliver real value for money for Essex residents. This is the most ambitious project that the council has undertaken, and finding the right partner to help us deliver it is a vitally important step.’
However, the council refused to be drawn on the costs of the scheme to Essex council tax payers.
Sarah Longworth, IBM’s strategy and change leader for Europe, told Public Finance that the deal ‘will not initially lead to job losses’. She said that the firm is reviewing £800m of services that are currently contracted out. IBM will look to increase the use of the internet and update the IT programmes, which will allow the council to ‘redeploy staff to front line services’.
She added that the cost of the scheme was a matter for Essex to announce.
23 December 2009
Essex County Council has signed an eight-year outsourcing deal with IBM but there are still doubts over its cost.
The agreement, which was widely expected, will result in IBM providing customer services and back-office functions. The council hopes this will divert £300m from these areas to invest in front-line services.
The leader of Essex County Council, Lord Hanningfield, said: ‘Working [with IBM] will help to keep council tax low and deliver real value for money for Essex residents. This is the most ambitious project that the council has undertaken, and finding the right partner to help us deliver it is a vitally important step.’
However, the council refused to be drawn on the costs of the scheme to Essex council tax payers.
Sarah Longworth, IBM’s strategy and change leader for Europe, told Public Finance that the deal ‘will not initially lead to job losses’. She said that the firm is reviewing £800m of services that are currently contracted out. IBM will look to increase the use of the internet and update the IT programmes, which will allow the council to ‘redeploy staff to front line services’.
She added that the cost of the scheme was a matter for Essex to announce.
