Serco likely to win £71m council contract

Monday 24th February, 2014

Lincolnshire County Council have recommend that Serco be awarded the five year contract to take over its support and customer services, in a deal worth £71m. The deal is likely to affect around 400 staff when the current 15 year relationship with Mouchel comes to an end next year. The new contract follows a 12 month procurement campaign with Serco, Agilsys and BT competing for the deal.

Serco is in line to win the contract to deliver IMT, finance and HR services. Customer care services are also likely to be included in the deal. In savings estimates that sealed the deal for the Serco, the company is expected to make savings for the Council worth around £14m.

Approximately 200 staff from the council and a similar number from Mouchel would transfer to Serco if the decision is rubber-stamped by councillors next month. Serco has confirmed that for the duration of the contract it would employ the same number of staff within Lincolnshire. However, some of the staff will be working on other services for other Serco clients.

Councillor Martin Hill, leader of the Lincolnshire County Council, said: “Both of the finalists submitted excellent bids and officers would have been pleased to recommend either company. But in the end Serco delivered a better deal with more savings.

“Serco has also said that it would continue to employ the same number of staff within Lincolnshire and that there is even the potential to create an additional 140 local jobs over the five-year contract.

It's expected that services will start to be transferred from April 2014 in preparation for the transition on April 1, next year.