Mike SimonsA major row has erupted between IT outsourcer CSL and Taunton
Deane Borough Council in Somerset over the termination of a
revenues and benefits contract and the return of services
in-house.
The confrontation is a further example of the difficulties local
authorities can face once they have outsourced core business
processes. It follows Lambeth council's problems with Capita
(Computer Weekly, 13 April) and Kingston council's decision
to terminate its contract with EDS (Computer Weekly, 2
December 1999).
It also illustrates the ongoing crisis in the delivery of
housing benefits, which has affected Sheffield, Manchester,
Hackney, and other councils.
Jefferson Horsley, leader of Taunton Deane Borough Council, told
Computer Weekly that after a stormy meeting last week, CSL
had reneged on agreements and withdrawn its commitment to a smooth
transfer of benefits and council tax systems to the authority.
"We are very disappointed at CSL's arbitrary action, which is
not in the interests of the public," said Horsley. "The council is
continuing its work towards disengagement. Our prime concern is the
return of a quality service to claimants, ratepayers and
landlords."
Horsley said he believed CSL expected the council to drop all
financial claims on the outsourcer in return for a smooth
handover.
Bob McCullough, CSL's acting general manager of the Taunton
Deane contract, reacted angrily to the statement.
"CSL has every intention of honouring the company's offer to
withdraw from the contract on the terms that the council received
in March. It is the council that has failed to honour the March
agreement through counter-proposals that were placed before CSL,"
he said.
McCullough denied that CSL's co-operation was conditional on the
council dropping claims for compensation over service delivery.