Haringey Council has signed a 10-year contract with Logica to
implement mySAP.com across its financial, human resources and
payroll systems.
Logica will also provide hosting and support for the lifetime of
the £13m contract, which includes change management and staff
training.
Haringey and Logica believe the system will make savings of between
3% and 6% (£1m-£2m), although this is not included in the service
level agreement.
The council's project manager Lisa Wills said, "Logica will provide
the system and manage it for us, but it is for us to use the
system, manage the structures, the people and process in such a way
that we make the savings."
Major efficiencies are expected with the introduction of IT in
areas such as human resources and payroll, which currently use
Uni2000 software but remain largely paper-based. A saving of 3%
would cut staff costs by £250,000.
Haringey believes the system will enable it to meet the
e-government target of 100% electronic service delivery by
2005.
The council advertised the contract at the end of last year and
received 36 expressions of interest in January. The shortlist saw
Logica up against Pricewaterhouse-Coopers and ITNet.
Wills said, "The face-to-face meetings we had during the
negotiations were extremely helpful as they enable you to build up
a rapport. You get a much better understanding of where they are
coming from in a business point of view and they get a better
understanding of local authorities."
Logica has a contract with the States of Guernsey government and
has been shortlisted for two metropolitan authorities and a county
council.
Bob Griffith, national secretary of the Society of Information
Technology Managers (Socitm), said local authorities are
increasingly using mySap.com, with contracts up to about
£30m.
"With any contract of [this] length there is an increased risk of
difficulties," said Griffith, "But suppliers like longer contracts
because they have got the client locked-in."
He said authorities also favour long contracts because it avoids
repeating the difficulties of negotiating the deal too often.
"Flexibility is the most important thing and the most difficult
thing is the reducing cost of the infrastructure."
Logica is one of a number of companies moving into the public
sector, but Griffith said there is concern that some will lose
interest when the economy improves and lucrative private sector
contracts return.