Swansea Councilhas recommended its cabinet not to proceed with phase two
of a controversial outsourcing programme with
Capgemini.
The council had planned to outsource its back-office functions
and IT services in phase one of an £83m deal with Capgemini, after
18 months of wrangling with council IT staff, which included strike
action by Unision members.
Phase two of the deal was due to create a new call centre and
website front office to give local people a single point of contact
with the council.
But council leader Chris Holley said that over the last year
work by the council and Capgemini had shown that the phase two
proposals were not affordable.
"Phase one will improve the efficiency of support and
back-office services and will start to show benefits for the
council during 2007," he said.
It was accepted that £7.4m of “cash-realisable benefits” were
achievable over the 10 years of the phase one contract, a
spokeswoman said. However, the council agreed to spend £40m more
than its IT budget to achieve this saving. Originally, the council
had predicted it would save £72m.
Capgemini was not available for comment.
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