Proposal to replace joint venture with more flexible arrangement to go to city council cabinet next week
Birmingham City Council is preparing for a new approach to ICT partnership with Capita, with a formal proposal to go before its cabinet on 14 November.
This follows its indications in June that it was looking for a more flexible approach to working with the company as they wind up their Service Birmingham joint venture.
It said the joint venture will be wound up on 1 January next year and forecast that the new deal will deliver £43 million of savings by 2020-21, including £11.5 million for this financial year.
As indicated in the council’s earlier announcement, the partnership will involve Capita continuing to provide the current core ICT services contract until March 2021, get involved in specific projects and support the implementation of the council’s ICT and digital strategy.
Changing objectives
Councillor Ian Ward, interim leader of the city council, said: “As we’ve said before, the shape and objectives of the council are changing due to a wide range of factors including reduced funding for local government, changes in population profile and ever evolving technology.
“Our IT and digital services must support and lead in addressing these challenges and achieving these objectives, whilst providing flexibility, added value and supporting the council in continuing to deliver ‘day-to-day’ services whilst making this transition.
“The new deal will see the council gradually take more control of its ICT and digital services between now and 2021, by Capita and the council working together on the transition.
“Through these negotiations we have been able to secure significant savings in 2017-18, as well as secure future savings over the remaining three years of the contract. We need to protect frontline services and begin a process that will enable us to meet other future challenges.”
Image: Birmingham from Centenary Square by Andy G, CC BY SA 3.0 via Wikimedia Commons
