William Eichler 17 November 2016

Controversial outsourcing contract saves council over £30m

A review of a controversial contract between Barnet Council and private company Capita has revealed overall savings of £31m and high levels of resident satisfaction.

The London borough awarded Capita a 10-year contract to run the council’s Customer and Support Group (CSG) in 2013 - effectively outsourcing HR, finance, IT and estates, as well as a host of other services.

A council review has shown the cost of delivering the services provided in the contract is now £6m a year less than before the contract was signed.

Overall, the review revealed that once savings from procurement and additional council tax income were factored in, the contract saved Barnet £31m, while 90% of the contract’s key performance indicators were being met or exceeded.

Residents have also responded positively to the results of the outsourcing. 76% of residents were satisfied with the outward-facing customer services - up from 52% before the contract was established.

With respect to face to face services, 96% of residents reported being satisfied compared with a previous 35%.

‘I am very pleased to see that, three years into the contract with Capita to supply our back office and customer services, we are seeing substantial savings as well as increased resident satisfaction,’ said council leader Richard Cornelius.

‘This review confirms the contract is providing tangible benefits for our residents.’

The decision to outsource vital services has not been without its critics. In April 2015, 87% of Unison members working at Barnet Council voted in favour of two days of strike action against what they described as the council’s ‘obsession’ with outsourcing.

The trade union said at the time workers wanted to remain in employment at the local authority and not a ‘big multinational’ who may drop their workers to increase their profits.

SIGN UP
For your free daily news bulletin
Highways jobs

Group Engineer - Highway Operations

Kirklees Metropolitan Council
£48,226 - £53,460
We are looking for a Group Engineer to join our team in the Highways Service Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Learning and Development Digital Advisor

London Borough of Richmond upon Thames and London Borough of Wandsworth
£32,841 - £39,798 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

School Crossing Patrol

Durham County Council
Grade 1 £3,701 (approx.) £12.85 per hour
Join our School Crossing Patrol Service! Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit? Durham
Recuriter: Durham County Council

Social Worker

Durham County Council
Grade 9 - £35,412 - £39,152 / Grade 11 - £40,777 - £45,091 (pay award pending)
Make a real difference at the point where people need it most. Join a fast-paced hospital social work team where no two days are the same and your exp Chester Le Street
Recuriter: Durham County Council

Care Support

Durham County Council
Grade 4 £25,583 - £26,824 (pay award pending)
We're recruiting to a permanent role within our Pathways Service, which delivers day services to adults with complex needs, Monday to Friday. This is Peterlee
Recuriter: Durham County Council
Linkedin Banner