Southwark signs £26m outsourcing contract

The London Borough of Southwark has signed a five-year, £26m outsourcing deal with services company Serco.

Under the agreement, Serco will manage the council's IT infrastructure remotely. It will introduce thin client technology to modernise the council's desktops, servers and software apps.

It is hoped the modernisation programme will save the council £3m across the five-year term of the contract, with further annual savings of £230,000 forecast for the reduced amount of energy the IT infrastructure will use.

silicon.com Public Sector

Get the latest public sector news straight to your inbox. Sign up for the PS newsletter today!

Southwark has outsourced its IT since 1995 and this contract replaces a seven-year deal worth around £35m signed in 2001 with ITNet, now part of Serco.

Serco will also continue to set up links between Southwark's SMEs and other business and services across London and the UK.

Bill Murphy, director of corporate and customer services at Southwark Council, said the agreement will enable the council to generate wider investment into the Borough.

Serco has also pledged to set aside £250,000 of its profits to fund an IT accreditation and training academy for disadvantaged young people in Southwark.

The IT upgrade will be a fundamental part of the ambitious 10-year 'Southwark 2016' plan the borough launched last year to overhaul the council's services and facilities and regenerate run-down neighbourhoods.