Councils save a significant sum
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A London council has reported significant cost savings after completing the first phase of its partnership with Capgemini UK plc, in their attempt to transform back-office operations and save a large sum while doing so.
Havering Council estimated that the savings generated by the deal, which involved an overhaul of back-office IT systems and business processes, were around £1.5m per annum. It is hoped the savings will rise to £2.5m annually after the second phase of the deal is completed in April.
“Working with Capgemini, we have transformed our back office from being a largely paper-driven bureaucracy into a focused, modern and efficient business model - saving millions of pounds in the process,” said Andrew Blake-Herbert, the Council’s Director of Finance and Commerce.
Capgemini’s Head of Local Government Calum MacLeod described the recent restructuring as a “transformation” and paid tribute to the council’s leadership. He cited the scheme’s success as proof savings can be made without having any impact on essential front-line services.
Earlier this week, Bournemouth Borough Council announced it had extended its contract with Mouchel, which made a loss of £65m in the last financial year, despite fears over the company’s stability.
Hartlepool Borough Council is hoping to make similar savings as Havering Council in London, with plans to outsource public services being given the go-ahead, after originally being called in for review.
According to the Hartlepool Mail, around 65 workers at Hartlepool Borough Council’s revenues and benefits departments will be transferred to a private sector contractor, which was what was originally intended after the bid was first approved last December, following a meeting last week.
The proposals were reconsidered by the council’s scrutiny co-ordinating committee, amid concerns over the bidding process, the savings at stake and opposition from some cabinet members. While the exact details of the contract are yet to be released, the panel has given the green light.
“It is our responsibility as a cabinet to produce a strategy that gets us through the difficult financial climate,” said Mayor Stuart Drummond. “We need to generate a substantial amount of savings and this will protect a number of jobs, and not just those that are transferring across.”
Earlier this month, three London borough councils, Westminster, Kensington and Chelsea, and Hammersmith and Fulham, tendered for a third-party provider to outsource a range of back-office functions.
With the savings made possible by freelancers working for a price that is much cheaper than the price to be found from the high street, companies are keen to save as much as they can. |
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Author Resource:-
Looking for different freelance experts, from freelance web designers and freelance graphic designers, to freelance SEO experts and freelance programmers, it is clear that there is a significant amount of money to be saved through outsourcing.
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By :
Jane Clarke
Submitted
2012-02-06 14:12:24 |
Article From Article Mayhem
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