Essex county council 'set for biggest ever shared services deal'

Nov 17 2008 10:40AM

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Essex county council is set to spark a bidding war in the world of shared services after outlining plans for a £5.4 billion outsourcing contract.

The eight-year deal, which would be the largest of its kind, has already sparked interest among firms operating the sector, reports the Local Government Chronicle.

Speaking to the news provider, one senior outsourcing consultant stated that he expect the deal to be the focus of a large number of bids.

He said: "There are a lot of conversations going on as people try to work out what the winning combination for a consortium bid could be."

The deal will see a large number of functions outsourced, including IT and business consulting.

However, the council will only go through with the decision if it is satisfied the contract will deliver the efficiency savings it is looking for.

Last month, Dr Brian Gibons, local government minister in the Welsh Assembly, stated that shared services can save councils money and for this reason should be embraced.