Peterborough City Council and Lincolnshire County Council have signed extensions to their contracts with Serco Group for frontline and back office services.
The Peterborough deal adds 10 years to the prevailing contract to take it up to 2031 with a value of approximately £105 million for the company.
It takes in customer, business support and shared transactional services (including revenues and benefits), transactional HR, payroll, procurement and business transformation. Serco said that under the existing agreement it has delivered £10 million in savings to the council and hit its key performance indicator targets.
The Lincolnshire extension will run for two years until at least 2022 with a value of £30 million. The company will continue with services it has provided since 2015 covering customer, financial, IT, transactional HR and payroll operations.
IT analyst company TechMarketView commented that these are important wins for Serco given that there are few business process services deals among local authorities at the moment. It pointed out that the group also recently won a long term contract extension with Hertfordshire County Council.