Havering Council reports cost savings of £1.5 million per annum following a transformation of its back-office IT systems and business processes carried out through partnering with Capgemini UK plc. The Council says that the savings will rise to £2.5 million per annum once the second and final phase of the transformation is completed in April 2012. Havering Council is the local authority for the London Borough of Havering, which has a population of 230,000, and Capgemini UK plc is part of the Capgemini Group, one of the world’s foremost providers of consulting, technology and outsourcing services.
The first phase of the transformation project, completed in just ten months, encompassed the majority of back-office functions at Havering including finance, payroll, HR and procurement, and has resulted in a significant reduction in paperwork and bureaucracy. A multiplicity of complex procedures has been replaced by simplified and standardised business processes based on proven international best practice. The project also involved migrating the Council from ageing earlier-generation IT systems to the latest Oracle enterprise-wide suite of business applications, custom-designed for UK local authorities.
Andrew BlakeHerbert, Group Director of Finance and Commerce at the London Borough of Havering, said: ‘Working with Capgemini, we have transformed our back office from being a largely paper-driven bureaucracy into a focused, modern and efficient business model - saving millions of pounds in the process. The first tranche of savings resulting from this transformation is already in the bank. Over the next five years we expect to save at least £15 million in back office cost, helping us protect frontline services for local people while managing large reductions in Government funding. We don’t know of any other local authority in the UK that has successfully managed such a wide-ranging change programme in such a short space of time.’
Capgemini was selected as transformation and IT partner following a rigorous competitive bidding process. Its success stemmed from its proposal to deploy its t-Gov (Transform Government) methodology, which relies on proven techniques and templates to accelerate local government transformation programmes and to systematically eliminate or minimise the risks inherent in major change. Other factors in the choice of Capgemini were its excellent references from other UK councils, its in-depth understanding of the challenges facing Havering, its collaborative style of working and its Rightshore® global delivery model which aims to provide the right combination of cost, quality and expertise.
A key feature of the transformation is the deployment of shared services to Council staff across all departments, bringing more efficient and productive ways of working and providing faster and better information flows within and between departments. The new IT facilities aim to empower staff at all levels and are especially important for senior staff as Havering moves towards a smaller and leaner management team, with fewer managers having wider responsibilities and multiple skill sets. Support for decision making has been considerably improved, with monthly paper documentation replaced by overnight online reports providing up-to-the-minute data.
Havering also plans to make its new systems available to other public sector bodies, including health, education and police authorities as well as other councils, in London and beyond, on a commercial shared services basis, generating an additional return on the Council’s investment.
Calum Macleod, Head of Local Government at Capgemini UK, said: ‘Transformation is a hugely over-used word but this is exactly what Havering have achieved for their back-office. There are always challenges in a major project like this and we’d like to pay tribute to the Havering leadership team for driving this project through the Council. Our work with Havering proves once again that very significant savings can be made in the local authority sector without sacrificing front-line services, and indeed while strengthening those services. Our t-Gov approach, which leverages our Lifecycle Services for Oracle Applications, is currently being implemented at a number of other UK councils and we look forward to announcing results as successful as those that have been achieved at Havering.’
Capgemini was awarded “Oracle Global Applications Partner of the Year” for their innovative t-Gov solution at Oracle Openworld 2011. Details at:
http://www.capgemini.com/news-and-events /news/capgemini-receives-oracle-partnern etwork-specialized-global-partner-of-the -year-award-for-oracle-applications/
With more than 115,000 people in 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2010 global revenues of EUR 8.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.
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