Birmingham council extends partnership with Capita in £142m deal

Birmingham council has signed a new £142m contract with Capita, aimed at transforming customer services over the next 10 years.

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Birmingham council has signed a new £142m contract with Capita, aimed at transforming customer services over the next 10 years.

The deal extends the council’s Service Birmingham partnership with Capita by adding to the original £475m 10-year IT transformation contract between the two parties signed in April 2006 and a three-year £38m corporate services deal signed in July last year.

The 10-year customer services overhaul will be carried out with business transformation specialist Axon.

Deputy council leader Paul Tilsley said: "Birmingham city council is dedicated to delivering the highest levels of customer service and value for money to its citizens. Through Service Birmingham smarter, more efficient ways of working are being established which have already generated significant savings.”

The new deal arises out of the original partnership, which was created with governance arrangements in place to allow the addition of extra business transformation projects. The corporate services project, aimed at save £800m over 10 years, has so far produced £9.5m savings.

IT developments in Birmingham have been proceeding apace, with work on a £130m SAP implementation - to eventually cover 10,000 users - beginning in April.

The council is also nearing completion of a new converged IP network to connect 240 offices, 60 libraries and 450 schools. The Cisco network will replace three predecessor networks and support 20,000 users.

But not all of Birmingham’s innovations have gone as planned. In November, the council was forced to defend a year-long trial of desktop Linux after an independent report showed installing Microsoft’s Windows XP would have cheaper.

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