Hertfordshire outsources IT and back office in £200m deal

Hertfordshire County Council has signed a £200 million outsourcing deal with Serco.

Under the eight year agreement, Hertfordshire will aim to transform its IT and business processes, and save £25 million. The deal also covers contact centres, finance, payroll, human resources and facilities management.

The contact centres will remain in Hertfordshire County Council premises, and up to 400 employees are expected to transfer to Serco. Neither the council nor Serco had said at the time of writing how many jobs will be lost.

The outsourcing will also be available to Hertfordshire’s ten district councils, and its police force, as a shared service. It may also be used to aid road services, the environment, and children’s and adults’ services.

Serco will attempt to improve system and process efficiency at the council. It will also introduce better communications to assist staff to work remotely.

Hertfordshire has employed Serco’s support services for 18 years, and currently pays £8 million annually for the service.

Councillor David Lloyd, executive member at the council, said: "This contract will make it easier for people to access council services and make a significant contribution to the savings we must make over the next few years.”