Haringey in 10-year deal

Haringey Council has signed a 10-year contract with Logica to implement mySAP.com across its financial, human resources and...

Haringey Council has signed a 10-year contract with Logica to implement mySAP.com across its financial, human resources and payroll systems.

Logica will also provide hosting and support for the lifetime of the £13m contract, which includes change management and staff training.

Haringey and Logica believe the system will make savings of between 3% and 6% (£1m-£2m), although this is not included in the service level agreement.

The council's project manager Lisa Wills said, "Logica will provide the system and manage it for us, but it is for us to use the system, manage the structures, the people and process in such a way that we make the savings."

Major efficiencies are expected with the introduction of IT in areas such as human resources and payroll, which currently use Uni2000 software but remain largely paper-based. A saving of 3% would cut staff costs by £250,000.

Haringey believes the system will enable it to meet the e-government target of 100% electronic service delivery by 2005.

The council advertised the contract at the end of last year and received 36 expressions of interest in January. The shortlist saw Logica up against Pricewaterhouse-Coopers and ITNet.

Wills said, "The face-to-face meetings we had during the negotiations were extremely helpful as they enable you to build up a rapport. You get a much better understanding of where they are coming from in a business point of view and they get a better understanding of local authorities."

Logica has a contract with the States of Guernsey government and has been shortlisted for two metropolitan authorities and a county council.

Bob Griffith, national secretary of the Society of Information Technology Managers (Socitm), said local authorities are increasingly using mySap.com, with contracts up to about £30m.

"With any contract of [this] length there is an increased risk of difficulties," said Griffith, "But suppliers like longer contracts because they have got the client locked-in."

He said authorities also favour long contracts because it avoids repeating the difficulties of negotiating the deal too often. "Flexibility is the most important thing and the most difficult thing is the reducing cost of the infrastructure."

Logica is one of a number of companies moving into the public sector, but Griffith said there is concern that some will lose interest when the economy improves and lucrative private sector contracts return.

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