Fife Council signs £26m transformation partnership with Capgemini

Charlotte Jee Published 29 January 2013

Four-year deal aimed at delivering cost savings and efficiency improvements for the council


Scottish local authority Fife Council has signed a £26m contract to implement a number of transformational change programmes over four years.

The contract, which was awarded to Capgemini, is expected by Fife to deliver significant cost savings and efficiency improvements with a goal of optimising to council business processes, implementing major change programmes and transforming ICT to support local services.

According to the relevant OJEU contract award notice, the services delivered under the agreement will include business and management consultancy services, business development consultancy services, computer and related services, software package and information systems, postal and telecommunications services and business services including "law, marketing, consulting, recruitment, printing and security."

Capgemini was chosen for the partnership after a six-month procurement exercise involving more than 20 other providers.

The partnership will be overseen by a joint Partnership Management Board comprising three people each from Fife Council and Capgemini. The two organisations will work together to implement specific projects, and the teams involved will be based at either the council's main offices in Glenrothes or Capgemini's offices in Edinburgh and Glasgow.

Speaking to Government Computing, Michael Enston, Fife Council's Executive Director of Corporate Services, explained that although the contract is billed as being worth £26m, "that is just the council's estimate of the amount of work that will be put through the partnership in the coming four years. We aren't contractually obliged to deliver precisely £26m. Indeed, it could be more or less than that."

Regarding the savings benefits of the contract, Enston added, "They'll come from the individual change programmes but overall we're looking at about £60m over the next three financial years. We're not pinpointing exactly how much we'll save but that gives you a rough idea."

Although the current range of services is "a pretty standard kind of list", Enston said, "The emphasis we'd place is on systems we know we have to replace over the next four years, our legacy IT systems such as core financial systems, asset management systems and procurement systems. One of the major services we're seeking is an ERP solution for the council, obviously alongside our major change projects."

It is understood that although there is currently no option in place to extend the contract, it could evolve into a different set-up, such as a joint venture. According to Enston, "we could look to re-tender the contract or evolve it into something different after it may move into being something completely different."

In October 2012, Fife Council signed a four-year deal to provide managed connectivity services to its network of approximately 500 schools, corporate and remote office sites. The contract, awarded to Updata Infrastructure, is intended to improve connectivity speeds to council sites and reduce the council's annual connectivity bill by more than 40%, equivalent to around £600,000 per annum, or £24m over the agreement's four-year term.

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