Barnet Council is to spend between £42.7 and £57 million on the extension of its contract with Capita for IT and other back office services.
The company has released the details following the council’s recent announcement that it is to move most services under their current outsourcing contract in-house.
The existing contract is due to expire at the beginning of September 2023. Under the extension Capita will continue to provide HR and accounts payable services for a further year, and IT, revenues and benefits and customer services until the end of March 2026. This will include contributing to the modernisation of IT infrastructure.
It said the extension is initially valued £42.7 million, but with indexation and additional work could be worth up to £57 million.
Long term relationship
Al Murray, CEO of Capita Public Service, said: “The extension of our contract with Barnet Council reflects the strength of our long term relationship with the council. It also highlights our focus on creating better outcomes through the delivery of essential services for the local community.
“From next September onward, we will support the council by investing in and enhancing its digital capabilities. We will also be providing stable and continuous delivery of services that residents and businesses interact with every day.”
Announcing the plan to insource many services, Barnet Council’s leader Cllr Barry Rawlings said in July that it believes the move will provide better value for residents. It initially outsourced services to Capita in 2013, since when its administration has changed from Conservative to Labour.