By Andy McCue, 17 August 2005 15:20
NEWS Bedfordshire County Council has scrapped its £250m outsourcing contract after coming to a mutual agreement with Hyder Business Services (HBS) over how to end the deal.
The row had threatened to develop into a costly and public legal battle after the council served a one month termination notice on HBS last month over what it claimed were "breaches of contract" relating to key performance targets. HBS disputed the council's claims.
The 12-year outsourcing contract was originally signed in June 2001 and covers a range of services including IT, call centres, communications, HR, finance, education, business support, and highways and transport.
The transfer of more than 500 staff and services back to the council began earlier this week after Bedfordshire and HBS agreed terms to end the deal amicably.
A statement from the council said: "The precise details of the settlement remain confidential. However, as part of the agreement, Bedfordshire County Council has agreed to withdraw its previous notice of termination against HBS and both parties have agreed to the termination of their business relationship by mutual agreement."
Comments
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1. Tony Sygrove
Good on the Council to stick to its guns and win back the in-house IT support services. I would question their endevours in the first place to sign a contract for 12 years.
I have had considerable experience of outsourcing within the public sector and firmly believe that it is not the way forward. In my experience a stable relationship with a good service supplier is far more rewarding and beneficial to the council. I cannot relate too much information as I am hoping in the future that Local Authorities will request my services in helping them to secure an infrastructure which meets their objectives.
2. Roger Huffadine
Its a fairly simple formula.
If someone else can turn a profit by supplying outsourcing then either you are doing something wrong and wasting money or they are not going to supply identical services.
Come on now Local Authorities you don't need an MBA to work this one out.