One of the interesting things about Steria’s £175m IT services deal with Cleveland Police Authority is the fact that there were no redundancies. Over four hundred staff transfered to Steria, while the remainig 200 or so stayed with Cleveland.
This is a break from the norm. Usually outsourcing means cost cutting with redundancies contributing a large chunk of the savings.
But Cleveland has become Steria’s first customer of its new service offered to police forces. It needs staff after all. Perhaps when the next police force signs up for the shared service there will be redundancies.
One to watch.
If the savings can be found in areas other than cutting people costs the civil service might be more accepting of outsourcing IT in the public sector.