Keywords: Barnet council, Capita, outsourcing, shared services, HR, IT

Barnet council to approve multi-million deal with Capita despite challenges

Anna Bowsher | News | 13 December 2012

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Earlier this year, Barnet council invited service providers to tender with the aim of signing a contract to outsource much of the council’s back-office functions. The tender covers such roles as HR and payroll as part of the £1bn One Barnet programme to outsource and streamline council services.

Last month, Capita was named as the preferred bidder and the council were poised to sign a 10 year deal worth £320m, but opposition from inside the council has delayed the proceedings.

Since Capita was named preferred bidder, councillors have scrutinised the savings and performance promised in the One Barnet outsourcing deal.

The contract has been controversial, and council leader, Conservative Richard Cornelius, survived a confidence vote over the issue in early November with the support of 32 councillors, while 24 voted against him. Three councillors did not vote and four were absent.

However last week a scrutiny committee was called to address concerns over the deal. Councillor Alison Moore, leader of Barnet Council’s Labour party, said there were widespread concerns among councillors about Barnet Council's outsourcing deal. 

If the deal goes ahead, over 500 jobs will either transfer to Capita or be lost. By the end of the outsourcing contract in 2023, 147 of the 515 posts will be held by people working under contract to Capita in the London borough. Another 192 Capita staff will run Barnet's back-office from shared service centres.