London: Logica is to provide an innovative new shared services framework that is central to the UK Government's ambition to save public money.
It has been awarded a framework agreement for payroll, human resources (HR) and finance services by the Government Procurement Service, an executive agency of the Cabinet Office, which could support over 4.5 million public sector workers.
The new framework will enable any Central Government, police, education, local authority, health and any partially funded or fully funded public sector entity to benefit from shared services without a complicated or expensive procurement cycle. Centralised government frameworks such as this are expected to help save the government £3bn per year, according to Cabinet Office minister Frances Maude, through reduced procurement costs and better contract value.
The new framework includes payroll services, HR systems, HR outsourcing, outsourced training and integrated financial and accounting systems. By sharing in the economies of scale and total cost of ownership, public sector organisations can benefit from end to end services that will enable them to effectively and efficiently run their operations. Organisations which join the framework will reduce the cost of their back-office services enabling them to focus on delivering services to citizens.
Ed Jones, Managing Director of Public Sector at Logica in the UK said, "In the current economic environment it is vital that public sector organisations make cost savings but this can't be to the detriment of the services they provide for citizens. Shared services for back office functions such as HR and finance are a significant step to help public sector organisations save money, whilst enabling them to focus upon their core business.
"Logica has a long history of offering business process outsourcing and technology services to public sector organisations and being awarded this framework is testament of our ability to offer the best value to the public sector in a period when efficiency is more important than ever."
Marie-Helene Durif, Head of Sourcing and Category Management at the Government Procurement Service said, "The award of this contract is another milestone in the Government's strategy to centralise procurement, which will deliver significant and sustainable cost reductions for Government."