Clyde Valley Councils publish savings plan

Friday August 12th, 2011

Councils in Scotland have published a business plan for sharing back office services in a bid to save around £30m per year.

The Clyde Valley councils looking into the plan include East Renfrewshire, West Dunbartonshire, East Dunbartonshire, Inverclyde, Renfrewshire, Glasgow and North Lanarkshire councils.

By sharing support services of IT, finance, payroll, HR and revenues and benefits, the councils hope to achieve up to £30m a year in savings after the first five years, rising to more than £34m after 10 years.

Around 60% of the savings would be achieved through the back office sharing.

Writing in the plan, Lorraine McMillan and John Mundell, chief executives of East Renfrewshire and Inverclyde Council, said: “The [shared services] model allows us to improve our processes, increase our economies of scale, and pool our resources to invest in modern, proven IT solutions that help simplify, standardise and automate manual processes. It will reduce duplication in the procurement of IT solutions, reduce infrastructure costs and allow us to provide more online services to our staff and customers.”

There are currently 552 IT professionals employed across the Clyde Valley councils, with IT costing a total of £58.4m. 

If the business plan is agreed, the new shared service will operate as a public body owned by the participating councils. A management team will also be appointed to manage the transfer of services.

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