William Eichler 17 November 2016

Controversial outsourcing contract saves council over £30m

Controversial outsourcing contract saves council over £30m image

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

Catering Assistant x3 - Great Notley Country Park

Essex County Council
Up to £8.72 per hour
Please note that these roles are being offer as a permanent contract but on an as and when basis. We would expect you to be able to work 20 - 30 hours a week most weeks. England, Essex, Braintree
Recuriter: Essex County Council

Catering Assistant - Cook x2 - Great Notley Country Park

Essex County Council
£17500 - £19329 per annum + Plus Benefits Package
We hope to be able to have these position start for mid July 2020. England, Essex, Braintree
Recuriter: Essex County Council

Director of Governance and Compliance

Cheshire East Council
Six-figure salary negotiable on experience
Looking for a talented leader who is comfortable working at a strategic level as well as someone with a track record of sound operational management. Cheshire
Recuriter: Cheshire East Council

Director of Corporate Property

Westminster City Council
Competitive Salary
This is a senior role within the Council and so the key to the success will be leadership, engagement and... City of Westminster, London (Greater)
Recuriter: Westminster City Council

Property Manager Temporary Accommodation

Hackney London Borough Council
£55,233 - £56,289
We’re looking for someone who is energetic, focused and committed to managing and improving our buildings in a fast paced team. Hackney, London (Greater)
Recuriter: Hackney London Borough Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue