The London Borough of Enfield has extended a contract with Serco to provide ICT services by four years.
The extension, worth £20 million over the period, will take the contract to the end of September 2019. It also has the scope to include additional projects in areas of “transformation and innovation”, which are not available in the current contract.
“This contract means that our ICT systems will continue to be fully integrated across all our sites and ensure we can continue to offer our residents the best service possible, as well as deliver significant savings to benefit the local council tax payer,” said Andrew Stafford, Enfield council’s cabinet member for finance and property.
However, Serco partner Sungard is likely to the main beneficiary of this contract, according to TechMarketView analyst John O’Brien.
“Sungard is now Serco’s partner for IT infrastructure services. Sungard may therefore stand to benefit from this contract extension perhaps more than Serco,” he said.
“Serco’s decision to exit infrastructure services provision directly means that in contracts like these, that are more or less entirely ICT-focused, it will now have to play the long game in the hope that future business process/support service opportunities arise.”
He added: “Time will tell whether such deals prove worthwhile long-term investments.”
Enfield first started working with Serco in 2010, when it signed a deal for the provision of a wide range of ICT services. Since then, it has transformed the council’s IT infrastructure and introduced new service delivery channels, including a comprehensive data migration programme to move to a unified communications platform and a fully virtualised and hosted data centre.
The Enfield council contract comes a couple of months after Serco beat smaller rival Agilisys to sign a new £70 million, five-year contract to provide business process and contact centre services to Lincolnshire County Council.