Sheffield City Council has extended its existing seven-year IT services contract with Capita by another six years, in a deal worth up to £170 million.
The initial contract commenced in January 2009, and Capita says the extension is worth between £140 million and £170 million, covering the period January 2016 to January 2022. Capita beat Fujitsu for the original contract, which was estimated to be worth around £200 million at the time.
Under the terms of the extension, Capita will continue to deliver a core range of services on behalf of the council, including ICT, revenues, benefits, HR and payroll and financial business transactions.
In addition, Capita says it will also provide “additional business change capacity” where it will work in partnership with the council to “define and deliver projects designed to raise revenue and save money”. The two organisations have “identified the potential to generate significant additional savings”, said the council, over the life of the extended contract.
Andy Parker, chief executive of Capita, said: "The extension of Capita's partnership with Sheffield City Council reflects our commitment to build on our strong working relationship, and to deliver further significant transformation in the way services are provided by the council.
"Capita will work with the council to help it shape services to meet the future needs of citizens in Sheffield and we are committed to making a positive difference for the local community."
Image credit: Sheffield City Hall © Sheffield City Council