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Fujitsu agrees new 7-year shared services contract with Cambridgeshire and Northamptonshire County Councils

Partnership will offer the benefits of shared services to local authorities across the country in innovative new framework

London, 20 December 2010 – Fujitsu has successfully retained its contract with Cambridgeshire and Northamptonshire County Councils to work in partnership to deliver a pioneering shared service.

Fujitsu was originally appointed four years ago to deliver an ERP shared services platform based on Oracle e-Business Suite – this included functions such as financials, procurement and payroll. In March 2011 this contract was scheduled to finish and the Councils began to procure its replacement in June 2010. Fujitsu subsequently re-bid against a competitive field and was re-appointed; both Councils have agreed a new 7-year contract, projected to save the Councils approximately £7 million.

The two Councils are the founding partners of Local Government Shared Services (LGSS), the shared service venture set up to provide business support services to the Councils and potentially other public sector organisations. Through LGSS, Cambridgeshire and Northamptonshire County Councils share services including: finance, human resources, and procurement, supported by the ERP shared services platform.

The new contract will see Fujitsu provide shared application hosting, support, and development services to LGSS enabling them to leverage efficiency and cost saving benefits by streamlining internal business functions and IT infrastructure. The next stage of the LGSS programme will also see integration and streamlining of their internal processes delivering further savings.

Cllr Andre Gonzalez De Savage, chair of the LGSS Joint Committee said: “So far we have seen exceptional benefits from this tripartite agreement with Fujitsu. Sharing a single Oracle ERP platform with another like-minded council has proven to be a fantastic way to reduce costs and increase back office efficiencies; ultimately this translates to better services for our customers.”

Under this framework agreement other local authorities or public bodies can also join the shared service and take advantage of the efficiencies available.

Cllr Andre Gonzalez De Savage continues, “Fujitsu is extremely well aligned to the LGSS vision of being a leading provider in local government and the wider public sector for business support services, supported by a single Oracle ERP platform. In the wake of the 2010 Comprehensive Spending Review we believe that this type of framework represents a fantastic opportunity for local authorities. As more partners join, cost savings will increase proportionately for everybody.”

Currently more than 20 local authorities have expressed an interest in participating in LGSS.

In the future, more services, beyond Oracle, could be offered through the shared platform, diversifying to potentially a whole range of front and back office services.

Chris Garside, UK Government Division business unit director, Fujitsu UK & Ireland comments: “This shared services platform was one of the first of its kind when it began four years ago. It is a concrete example that shared services can work in the public sector and be highly successful. The maturity of this project means that as a collective group Cambridgeshire and Northamptonshire County Councils, supported by Fujitsu, can now offer this framework to the wider market as a viable option.”