Joint IT deal to save Essex councils £7 million

18 November 2011


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18 November 2011 | Angeline Albert   

Four local authorities in Essex have agreed to buy their IT services together to save £7 million by 2016.

This week, Braintree District Council, Castle Point Borough Council, Colchester BoroughCouncil and Rochford District Council announced Capita Secure Information Systems (CapitaSIS) will provide IT services to all four in a deal that is expected to halve their IT contract costs. 

By establishing a common specification, the councils’ buyers expect to benefit from large economies of scale that will reduce the cost of service provision.

The £8 million contract with Capita SIS will run for five years and become effective between April 2012 and April 2013 as each council’s current deal expires.

The total saving Colchester Borough Council expects to make is £3.4 million (a 47 per cent saving). For Castle Point Borough Council, the partnership will mean its IT services costs will reduce by around £1.7 million during the life of the five-year contract. Braintree District Council expects to save £1.28 million during the lifetime of the deal. Rochford District Council already has an arrangement with Capita SIS and previously negotiated savings on its IT contract in 2010. It expects to achieve a further £400,000 saving as part of the combined purchasing partnership, resulting in total savings of £1.2 million by 2016.

Councillor Jill Lucas-Gill, Rochford’s portfolio holder for service improvement and performance management, said: “The council made substantial savings when it renegotiated its contract with Capita last year. Not only will we save money for our residents, but we will also have a more streamlined and efficient method of procuring IT.”

The purchasing agreement attracted investment of £96,000 from ImprovementEast to support the specialist legal and IT advice needed because of the complexity of the joint procurement.


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