Report of the Director of Finance to the meeting of
Corporate Overview and Scrutiny Committee to be held on 27
thNovember 2013.
Q
Subject:
Bradford Councils ICT Contract
Summary statement:
This report looks at the key lessons learned from the first 8 years of the strategic ICT partnership and outlines proposed improvements for the remaining 2 years.
Stuart McKinnon-Evans Director of Finance
Portfolio:
Leader of Council
Report Contact: David Cawthray Phone: (01274) 432569
E-mail: david.cawthray@bradford.gov.uk
Overview & Scrutiny Area:
Corporate
1. SUMMARY
This report provides an update to the Corporate Overview and Scrutiny Committee on the lessons learned during the first 8 years of the Strategic ICT partnership as well outlining proposed actions that have been developed by the strategic partnership to deliver service improvements over the remainder of the contract.
2. BACKGROUND
A new Assistant Director for Information Services was appointed in May 2012 and was tasked with developing an IT strategy for the Council. In developing the strategy it was important to consider the background to the existing ICT strategic partnership and understand lessons learned so far. The new IT Strategy was presented to the Corporate Management Team in October 2012 and is in the process of being delivered.
Lessons Learned
Contract not delivering as it was originally intended
o The original intention of the contract was for IBM to implement a business change project driven by technology delivering improvements in all core Council activities as well as refresh of the aging IT infrastructure.
o IBM’s core competencies are in the delivery of business process change and technology hardware and software solutions. IBM subcontracted IT service delivery (end user support and infrastructure management) to Serco.
o Affordability issues for the Council with the extent of the business change projects led to a significantly reduced scope and therefore reduced value from the partnership.
Future large scale outsourcing contracts need to build in enough flexibility to allow delivery in a continually changing local government environment.
Unsuitable staffing model
o The existing Council IT staff were seconded into the Serco IT organisation rather than TUPE transferred. Serco have day to day operational management responsibility and the Council have terms and condition responsibility. This has resulted in staff not wholly owned by either organisation.
o Under the terms of the contract the Council have responsibility to provide the interface between IT and the rest of the organisation. This client side function is under resourced to manage the scale of engagement needed in such a large diverse organisation.
Future outsourced staffing models that allow for full ownership and accountability of the service and staff should be considered.
Client side functions that manage the interface between the strategic partner and the Council should be sufficiently resourced.
Unclear Council IT strategy
o The first 3 years of the partnership had clear, well defined projects that were delivered successfully. There then appears to have been no IT strategy on what should be delivered for the remaining term of the contract. That lack of single IT direction and leadership has led to services having to develop their own solutions and allowed the growth of a disparate IT infrastructure.
o Due to the lack of a strategy, technology investment and upgrade decisions have been deferred, leading to an aging infrastructure and poor technology performance.
Ensure a single agreed IT strategy for the council.
Continual investment in IT is required to maintain a good standard of service.
Proposed Future Actions
IT Strategy post partnership
o The strategic partnership ends in September 2015 and the IT strategy is to in-source the service at that point and realise the subsequent cost savings.
The IT organisation can then drive internal efficiency through system rationalisation.
Proposed actions for the remainder of the contract
o In the current financial climate it is important that IT savings are delivered before the end of the contract. Commercial negotiations have been ongoing with the partner for the last 12 months and are on track to be completed this year.
o The negotiations will produce an amended commercial agreement that will deliver savings and improve IT service delivery for the Council over the remaining term of the contract.
o The Client IT function will work more closely with the partner IT teams to improve agility and efficiency and ensure that the Councils IT requirements are aligned and delivered.
o The IT organisation will deliver new technology to improve service levels for all Council IT users and increase organisational efficiency through the use of technology.
3. OTHER CONSIDERATIONS
No other considerations have been identified.
4. FINANCIAL & RESOURCE APPRAISAL
The financial implications have been incorporated in the financial review and budget process.
5. RISK MANAGEMENT AND GOVERNANCE ISSUES No significant risks have been identified at this stage.
6. LEGAL APPRAISAL
All external contractual negotiations are subject to legal advice.
7. OTHER IMPLICATIONS 7.1 EQUALITY & DIVERSITY
There are no equality and diversity implications.
7.2 SUSTAINABILITY IMPLICATIONS
Not applicable.
7.3 GREENHOUSE GAS EMISSIONS IMPACTS
Not applicable.
7.4 COMMUNITY SAFETY IMPLICATIONS Not applicable.
7.5 HUMAN RIGHTS ACT
Not applicable.
7.6 TRADE UNION
All proposed organisational changes will follow consultation processes.
7.7 WARD IMPLICATIONS Not applicable.
7.8 AREA COMMITTEE ACTION PLAN IMPLICATIONS (for reports to Area Committees only)
Not applicable.
8. NOT FOR PUBLICATION DOCUMENTS None
9. OPTIONS
This report is for information and therefore there are no options for consideration.
10. RECOMMENDATIONS
This report is for information and therefore there are no recommendations.
11. APPENDICES
None.
12. BACKGROUND DOCUMENTS
City of Bradford MDC IT Strategy v1.4 2012
