Council agrees Service Birmingham contract extension
Birmingham City Council has agreed a five-year extension to its contract with outsourcing partner Capita. Service Birmingham, the joint venture between the two organisations, will carry out the ICT support work until 2021.
The contract extension was agreed following a cabinet decision last November to open negotiations.
Service Birmingham’s existing contract to provide ICT support and contact centre services will now be extended from 2016 to 2021.
As well as generating £135m of gross savings for the council over the next ten years, the deal is expected to improve council tax collection rates from 96.3 per cent to 98 per cent by 2017. If successful, this would represent an increased annual income of £4.8m.
As part of the new deal, 132 revenue services employees will transfer from the city council to Service Birmingham from April this year under TUPE regulations.
Paul Pindar, chief executive of The Capita Group, said: “We are delighted to be signing this new contract with Birmingham City Council. The long-term partnership between the city council and Capita is at the heart of this deal. We have already helped the council achieve considerable savings while improving service quality to their customers. This extension will help us to continue to do so.”
