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

Social Worker

Gloucestershire County Council
£39,481 - £42,123 per annum (pro rata) (see section "Salary" for details)
Our Mental Health Service is growing, and we are looking for dedicated, compassionate, and forward-thinking professionals Gloucestershire
Recuriter: Gloucestershire County Council

Social Worker

Gloucestershire County Council
£39,481 - £42,123 per annum + relocation allowance up to £8,000*
We have full time and part time Social Worker opportunities across Gloucestershire in our Adults Social Care Services. Gloucestershire
Recuriter: Gloucestershire County Council

School Crossing Patrol Officer - St Peters CE Primary School

Essex County Council
Up to £13.46 per hour
School Crossing Patrol Officer - St Peters CE Primary SchoolPermanent, Term Time£13.46 per hourLocation
Recuriter: Essex County Council

Commercial Waste Officer

North Yorkshire Council
£32,578- £35,570 per annum
As a Commercial Waste Officer, you will be a member of the wider commercial waste team. Scarborough, North Yorkshire - Hybrid
Recuriter: North Yorkshire Council

Regulatory Support Officer (Environmental Health)

North Yorkshire Council
£30,023 to £32,578 per annum
Are you ready to work in a busy front-line service and provide high-quality customer care? Northallerton, Harrogate, Selby, Richmond, Scarborough
Recuriter: North Yorkshire Council
Linkedin Banner