The Metropolitan Police currently spends around £325m a year on technology, over a third of which goes to Capgemini as part of a deal that is due to end in 2015. The London Assembly is now reviewing the Met’s overall IT strategy, which will obviously involve looking at the Capgemini contract.
The Met’s technology strategy sets out to make savings of £42m in 2014-15 and £60m in the following year.
So it will be interesting to see what happens to the Cagemini contract after the review, if anything does happen.
Will this mean breaking up the contract, putting the contract out for temnder, looking for bigger cost cuts or nothing?
Robert Morgan , director at sourcing consultancy Burnt-Oak Partners, says there is a lot of room for cutting costs in most IT services contracts and the Capgemini deal with the Met is no exception.
“This is easy to achieve in real terms and any supplier can and should achieve this about breaking into a sweat. No big deal. Redefining services, changing how the service is delivered, automating where appropriate, reducing direct labour inputs, applying new technology to resolve issues, the dropping cost of ownership generally and especially storage, going to private cloud, etc.
This is a relatively easy task especially if your client cooperates. Capgemini should be secure. If not then that says as much about Capgemini as it does the situation.”