Controversial Barnet outsourcing contract tipped for Capita's victory
In a significant development, Capita has been chosen as the preferred bidder for a 10-year, £320 million business services outsourcing contract from the London Borough of Barnet. This contract, part of the One Barnet scheme, a £1 billion privatisation programme, will see Capita managing a range of services including the council's call center, payroll, information technology, and HR.
The One Barnet privatization scheme, including a contract for 'development and regulatory services', has faced strong opposition. However, if approved, the contract is expected to bring about substantial changes. Capita's contract includes the development of a web-based Schools Portal, enabling schools to access information and use systems directly. Additionally, the investment will provide improved information technology and telephone support, offering every resident a single 'Amazon' style microsoft account with the council.
Capita beat BT to win the preferred bidder position for the contract. BT's tender is designated as a reserve bid and may be considered if the council cannot finalize contracts with Capita. Over the initial years of the contract, 197 roles will be moved to UK delivery centers outside the council. The total number of roles working on the contract will decrease to 468 over time.
The single account will allow residents to link a range of council services, from parking permits to allotment fees. This account is expected to streamline services and make them more accessible for residents. Moreover, more sophisticated analysis of the information gathered by the Council will be possible with the Capita bid, leading to improved management information for councillors.
Capita will make an upfront investment of £8 million to improve the delivery of these services. The corporate management team of Capita selected for the contract is known as the Capita Executive Committee. Barnet Council's leader, Rich Cornelius, survived a no-confidence vote earlier this month.
The contract period is for ten years with a guaranteed saving of over £120 million. The number of jobs moving to Capita is 512. Improved management information for councillors is expected from the Capita bid, making decision-making processes more efficient.
This outsourcing contract marks a significant step forward in the digital transformation of Barnet Council's services. The council aims to deliver services more efficiently and effectively, ultimately benefiting its residents. The final decision on the contract is expected to be made in the coming months.
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