Havering Council expects to save £2.5m per year through a £2.9m deal with Capgemini to implement an ERP system.
The London Borough will cut around 85 back office roles once the implementation of Oracle’s ERP system 12 is complete, reducing audit and back office headcount at the council to a total of 160.
The deal, signed in March 2011, has automated finance, payroll, HR and procurement functions cutting costs by £1.5m per year, with yearly savings expected to rise to £2.5m once the second phase is completed in April 2012. This will include the implementation of a performance management process, staff training, recruitment and project costing
Andrew Blake Herbert, financial head at the London Borough of Havering, said the council previously relied heavily on paper-driven processes, with some papers requiring six different signatures. “We already had Oracle as our core financial system, although we didn’t use it so much for HR and payroll. Now we have good real-time management information to improve processes.
“One of the key parts was putting in self-service, rather than chasing paper around the organisation. Now we automate everything, for example whereas before we’d give cards to staff for annual leave, they now log-on to the system and send a request, which is emailed to their manager to approve. We also no longer produce payslips for office-based workers, who now just go online and view their details on the system.
Havering also plans to make its new systems available to other public sector bodies, including health, education and police authorities as well as other councils, in London. The commercial shared services is expected to generate an additional return on the council's investment.