Council scraps £650m outsourcing plans

Walsall Council has dramatically ditched plans for a £650m outsourcing joint venture with Fujitsu Services.

The local authority initially announced Fujitsu Services as its preferred partner for the ambitious joint venture back in December 2004 but, after more than a year of contract negotiations, it has decided not to proceed with the project.

The Putting the Citizen First project had aimed to create 750 new jobs and overhaul the town's services by creating a regional business centre supporting 24/7 access to council services by email, internet and call centres.

More than 1,500 council staff would have transferred to Fujitsu Services, which had committed to investing £115m in the scheme.

But Walsall Council now says strong service improvements made over the last few years mean it is now better placed to meet the needs of local people without the joint venture.

Tom Ansell, leader of the council, said it had been a "difficult" decision to make.

He said in a statement: "When we began looking at this project, the council was in a weak position and uncertain about how the service improvement could be made without a partner but any proposal for a partnership had to be affordable both in the short term and in the long term for the council."

Peter Hutchinson, managing director of UK public sector at Fujitsu Services, said in a statement: "Both Fujitsu Services and Walsall Council have put considerable energies into the proposed partnership and it is disappointing that the council has decided not to proceed."