£522m London tender includes finance ICT

All London councils could outsource their financial software under a new tender worth up to £522m.

The tender has been launched by London Borough of Wandsworth, which is looking to outsource the ICT along with the rest of its financial transactions team.

The council believes it can make significant savings on these services, which currently cost around £1.8m a year, and has given other London councils the option to call off services from any future contract.

The council’s current financial services software contract expires in April 2016.

Any new deal would last for six years with an option to extend for a further four years.

According to the tender, the value of the business for Wandsworth would be between £6m and £18m over 10 years, and another £504m could come from other London councils.

Other councils joining would increase that value. The successful provider will be expected to agree terms enabling the council to recover some of the costs of procurement through a percentage reduction in the annual price to the council for each London borough council calling off the framework.

Outsourcing the financial transaction services will mean 34 staff will no longer be directly employed by the council.

Separately, Wandsworth has decided to delay a market testing exercise to outsource its ICT infrastructure, network and support services for another year.

It will now wait until making a decision on whether to move its data centre to the cloud, and will engage in discussions with other London councils to either share the functions or procurement process.

Colin Marrs

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