Plymouth City Council and a local NHS clinical commissioning group (CCG) hope to save £9 million over the next 10 years by pooling their ICT teams.
The council and Northern, Eastern and Western (NEW) Devon CCG launched ‘Delt Shared Services’, a private sector company jointly owned by the partners, at the start of this month.
Delt will act as ICT supplier for the two public sector partners and will also provide ICT support services for GP practices across Devon, previously the responsibility of NEW Devon CCG.
Annette Benny, a director of Delt, said that the organisations had wanted to keep expertise, technology and services within the local area rather than outsource functions to a large multinational.
She added: “There will ultimately be economies of scale too. Some examples include the sharing of management expertise and better contracting with suppliers and sharing of systems, which will help reduce costs for hosting, maintaining and upgrading ICT.”
The initial partners hope to expand to other public sector bodies in future and may offer services beyond ICT, according to Plymouth City Council documents.
The report states: “There is a greater opportunity to develop the shared services concept further into a wider model of back office shared service delivery which could also incorporate additional public sector partners.”
The 99 existing ICT staff from the two partners have transferred to Delt on the same terms and conditions with no redundancies, the council said.
The partners were awarded £500,000 to help set up the company earlier this year after they bid for funds from the Department for Communities and Local Government’s ‘Transformation Challenge Award’. This provided for half of the £1 million setup costs.
Find your next job with computerworld UK jobs