A joint venture initiative between the Newham Borough Council and IT service provider Steria is to be wound up, the borough's IT chief has confirmed.
Richard Steel, CIO of Newham, wrote in his blog on Computerworld UK today that Caboodle Solutions, which was established in 1999 to provide a range of of IT products and support services in and around the London borough, is to close.
Caboodle staff were told last week by the firm’s acting general manager that the council and Steria have agreed the closure.
A memo was also circulated to staff, which said “developments in the council’s IT infrastructure, and the implications of the impending move to a new headquarters location, have continued to erode the business that can be provided by the council.”
The note said that the business had not been able to counteract these changes by “growing sufficiently our external business.
“Our expectation is that Caboodle’s staff jobs can be protected, with Steria secondees redeployed into the Steria business, and permanent staff transferring to the council’s ICT service.”
Staff were promised they would be kept informed of developments and were urged to “maintain service continuity for the council.”
Caboodle has positioned itself to customers as a “unique proposition” in the marketplace. “We understand the issues and challenges involved in running a small business and working in the community and provide access to the world class product services, expertise and buying power you woudl expect from a leading European IT solutions provider.”