The London Borough of Hammersmith & Fulham has signed a £120m 10-year deal to set up London’s first shared services centre from 1 October.
The centre, which is owned jointly by Hammersmith & Fulham and systems integrator Agilisys, is being set up to run IT and other back-office functions for multiple London boroughs.
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Hammersmith & Fulham’s head of IT strategy, Jackie Hudson, said, “We are creating a centre of IT excellence in London. We have strong partnerships and links across local government in London and we would see ourselves delivering services to those councils through the shared services centre.”
Some 140 council employees will be outsourced to the joint venture company, which is to be called H&F Bridge Partnership, where they will work alongside a further 10 people from Agilisys.
The contract will supply Hammersmith & Fulham with its IT function, but not the other back-office functions. The council’s OLAS finance system, Trent human resources system from supplier Midland and Radius e-procurement system will all be provided by the joint venture company.
The joint venture will also run the electronic document management system that underpins the council’s social care records project.
H&F Bridge Partnership will deliver Hammersmith & Fulham’s Customer First and Business Transformation project as well as running the IT function. The joint venture will be paid a flat rate of £12m a year for the next 10 years as the council expects its business transformation work to reduce costs over time.
Hudson said, “It’s difficult to say what the entire scale and scope of the Customer First and Business Transformation programme will be, but it will change customer contact across the council. It’s about improving the way that online transactions work and it’s about transforming the back office.”
Hammersmith & Fulham claimed that a confidential benchmarking exercise by the Society of IT Management proved that its IT function already delivered a “good service” to the council.
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