£1bn shared services scheme 'would save three times the cash'

Jan 13 2009 11:59AM

News brought to you by IQPC.

A £1 billion ring-fenced funding product for shared services in IT would eventually save three times as much cash, according to one firm.

Logicalis, an international IT firm, has called on the government to put together a centrally funded but locally delivered package to help councils as well as health and education bodies to accelerate cost cutting programmes.

Tom Kelly, managing director of the firm's UK arm, said: "For every pound spent of this £1 billion fund, local government, health or education services would see a return of at least £3 in efficiencies by 2012."

According to Mr Kelly, this means that a return on the initial investment could be achieved by the end of the current downturn.

He suggested that the cash be used for projects such as shared IT schemes, as these will provide the greatest savings.

Last week, it was revealed that IBM has signed a $5 million (£3.2 million) shared services deal with Indian financial services firm Kotak Mahindra Bank.