Birmingham City Council has signed an additional £142m
IT services contract with Capita covering a 10-year
period.
In
December 2005, Birmingham chose Capita as its strategic partner
to support business transformation and IT within the council.
A special purpose vehicle,
Service Birmingham, was set up by Capita and
a
10-year, £475m contract to deliver IT transformation was signed
in April 2006.
Governance arrangements were also put in place for additional
business transformation programmes to be proposed and
implemented.
In July 2006, it was announced that Service Birmingham would
support the first additional business transformation programme to
be approved. This programme is focused on corporate services and
has an allocated budget of £88m over three years.
Capita has now announced that the business case
for the second of these programmes, to transform customer
services, has been approved. This additional programme has been
allocated a budget of £142m over 10 years.
Delivery of the customer services transformation programme will
again be supported by Service Birmingham and its sub-contractor
Axon.
Council deputy leader Paul Tilsley said, "Through Service
Birmingham, smarter, more efficient ways of working are being
established which have already generated significant savings.
“These improvements are creating a more vibrant, inclusive and
forward-thinking city to live in and will place Birmingham at the
forefront of transformational government."
Over 500 council employees have been seconded to Service Birmingham
and the new IT network.
The council says the corporate services deal (including
procurement, finance and business management) has already saved the
council £9.5m and claims it will generate savings of £800m over 10
years.
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