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Flexible ICT partnership could save Birmingham £43m

Birmingham City Council has announced a new proposal for a flexible ICT partnership.

The new plans, which could save the council £43m by 2020-21, will go to the council’s cabinet on 14 November.

According to the council’s budget, it should deliver savings of £11.5m in 2017/18.

The proposal outlines the findings and recommendation from the negotiations which have been carried out since the cabinet's approval of an earlier report in June 2017, based on an agreed intent from both parties to deliver the council’s objectives.

The outcome of the negotiations will see the maintenance of the current core ICT services contract run until March 2021, with the council ending the joint venture arrangement which has been in place since 2006 three years early, on 1 January 2018.

The partnership will focus on project-based work to deliver savings over the next three years, and the implementation of the council’s ICT and Digital Strategy which was approved in October last year.

Councillor Ian Ward, interim leader of the city council, said: “As we’ve said before, the shape and objectives of the council are changing due to a wide range of factors including reduced funding for local government, changes in population profile and ever-evolving technology.

“Our IT and Digital Services must support and lead in addressing these challenges and achieving these objectives, whilst providing flexibility, added value and supporting the council in continuing to deliver  ‘day-to-day’ services whilst making this transition.

“The new deal will see the council gradually take more control of its ICT & Digital services between now and 2021, by Capita and the council working together on the transition.

“Through these negotiations we have been able to secure significant savings in 2017/18, as well secure future savings over the remaining 3 years of the contract.

“We need to protect frontline services and begin a process that will enable us to meet other future challenges.”

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