Gloucester City Council is aiming to save £600,000 through a contract with Civica to provide IT services for six years.
The deal will expand the relationship the council has with Civica, which has provided it with revenues and benefits services since 2011. This agreement has been seen as a major success.
“We have been delighted to see what has been accomplished so far, such as the reduction of our council tax arrears by £1.5m," said Paul James, leader of Gloucester City Council. "We look forward to developing our relationship with Civica further as we continue to drive cost savings, sustain employment and improve services for our citizens.”
The latest agreement will see operations outsourced to Civica and the reform of back-office, transactional and corporate support services to help the council operate with a lower budget.
The council said jobs will be protected. Staff from the council will join Civica through a Tupe transfer, and additional staff have been recruited centrally within Civica to facilitate the management of six projects identified in the tender as priorities.
According to research from NelsonHall, local government increased spending on IT outsourcing by 58% in the first three months of this year.