Westminster City Council, the Royal Borough of Kensington and Chelsea, and Hammersmith & Fulham Council have signed BT and Agilisys to deliver ICT services under a shared framework agreement that is thought to be worth over £1 billion.
It is hoped that the three boroughs can build on previous shared deals and deliver further cost reductions and improve efficiency through the agreement. The councils recently said that by sharing £300 million worth of services, they expect to hit an overall savings target of £3.4 million by 2014/15, and to save an additional £7 million by 2015/16.
Westminster City Council will be procuring computing and data centre services from BT, and service desk and service management from Agilisys. It expects to have these services in place by autumn 2014.
Kensington and Chelsea and Hammersmith & Fulham are expected to take advantage of the framework as their existing contracts terminate and when the “business case allows”.
“The vision of the tri-borough programme is combining services to tackle common problems, improve people's lives and make public money go further,” Westminster City Councillor Melvyn Caplan, Cabinet Member for Finance, Resources and Customer Services, said.
“Savings from the adoption of these shared services are positive and underpin the delivery of wider service savings across the tri-borough. These new frameworks will enable more efficient tri-borough working and achievement of existing and future savings targets.”
He added: “It is from this perspective, and following a highly competitive tender process, that we selected these two suppliers for both the quality of their proposals and the value for money they offer.”
Earlier this year, Wesminster’s chief operating officer, Barbara Moorhouse, told Computerworld UK that the IT services contract has the potential to become a pan-London agreement if it is successful.
She said: “We have more than a billion pounds of potential interest in this contract. The main advantage for suppliers with this kind of arrangement is that they get access to a bigger market place, while organisations get a good price with lower procurement costs from a leading provider which they might not have been able to achieve on their own.
“Given the long list of those who have expressed an interest, this I.T contract has the potential to be pan-London if local authorities and other organisations want to join in.”