Government signs £1 billion deal with Steria to run back office functions

5 November 2013

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5 November 2013 | Will Green

Steria has been selected by the government to run back-office functions for a contract worth £1 billion over 10 years.

The company will manage the second Independent Shared Services Centre (ISSC2) as part of a new joint venture company with the government called Shared Services Connected Limited (SSCL).

SSCL will deliver services including procurement to the Department for Environment, Food and Rural Affairs; the Environment Agency and the Department for Work and Pensions, with more public bodies expected to follow.

The government’s “Next Generation Shared Services Strategy” sets out a model to share HR, procurement, finance and payroll across five centres, with two run by the private sector. The government is aiming to save £600 million under the strategy.

The Public and Commercial Services union organised a strike on 25 October against the deal with Steria, arguing the move would lead to the “offshoring” of jobs.

The contract to run the first Independent Shared Services Centre (ISSC1) was awarded to Arvato earlier in the year.

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