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Southwark renews outsourcing with Serco in £26m deal

The London Borough of Southwark has extended its outsourcing arrangement with supplier Serco in a five-year, £26m deal.

The council’s director of corporate and customer services, Bill Murphy, said, “The proposals for the renewed contract are extremely innovative and the agreement will enable us to empower the community and generate wider investment in the borough.”

Southwark expects the Serco deal will cut costs by a further £3m a year over the next five years. The council needs to keep making cost savings so that it can meet efficiency targets set by the Gershon efficiency review.

The majority of the savings are expected to come from moving the council’s desktops, servers and applications on to thin client technology.

A further saving of £230,000 a year is expected to come from introducing energy efficient hardware.

As part of the deal, Serco has agreed to set up an ICT training centre, costing £250,000, for young adults in Southwark.

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