ICT Insource and Shared Service Business Case
Report of Head of Finance and Procurement
Summary
This report seeks support for the business case to implement a shared ICT service across Cherwell District Council (CDC) and South Northamptonshire Council (SNC), and agreement to fund the set up costs of such a service.
Recommendations
The Executive is recommended, subject to approval of the staffing implications by Personnel Committee and similar approval by the respective SNC decision making bodies, to:
(1) Endorse the appended business case for insourcing the ICT function at the end of the current SNC contract with Capita.
(2) Request that the ICT Programme Board progress the insource.
(3) Approve revised Terms of Reference for the ICT Programme Board as set out in the business case and delegating the authority to take all necessary non staffing decisions to implement it to the Director of Resources in consultation with the Board Chairman.
(4) Approve the supplementary capital estimate to fund the investment required to develop a shared platform and delegate authority to the Director of Resources in consultation with the Lead Member for Financial Management to fund the one off revenue costs from ICT earmarked reserves.
Additional documents:
Decision:
Recommendations approved.
Minutes:
The Head of Finance and Procurement submitted an exempt report which sought support for the business case to implement a shared ICT service across Cherwell District Council (CDC) and South Northamptonshire Council (SNC), and agreement to fund the set up costs of such a service.
Resolved
Subject to approval of the staffing implications by Personnel Committee and similar approval by the respective SNC decision making bodies:
(1) That the business case for insourcing the ICT function at the end of the current SNC contract with Capita be endorsed.
(2) That the ICT Programme Board be requested to progress the insource.
(3) That the revised Terms of Reference for the ICT Programme Board as set out in the business case be approved and the authority to take all necessary non staffing decisions to implement it be delegated to the Director of Resources in consultation with the Board Chairman.
(4) That the supplementary capital estimate to fund the investment required to develop a shared platform be approved and authority be delegated to the Director of Resources in consultation with the Lead Member for Financial Management to fund the one off revenue costs from ICT earmarked reserves.
Reasons
There is a compelling business case to take forward the information services shared project with South Northamptonshire Council. In addition to the financial savings and contribution to funding reductions, the ICT shared service would enable other ICT projects to deliver further savings (from further rationalisation of systems) and enable the taking forward of wider transformation opportunities that would generate cashable savings and service improvements to both authorities.
Options
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Option One |
The “insource alone” option for SNC would require greater investment by CDC as the necessary costs to refresh its infrastructure would not be shared. The potential for much greater savings in the future through rationalisation of the two councils’ applications would also be unavailable. This option also goes against the general principle of sharing, established in the shared management team business case.
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Option Two |
The option for SNC to simply replace its total outsource with another, is also unattractive from CDC’s perspective as again, CDC would need to make greater investment in its own infrastructure without any benefits from future economies of scale. This option also goes against the general principle of sharing, established in the shared management team business case.
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