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18 November 2011 | Angeline
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
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
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.