The outsourcing of Information and Communications Technology (ICT) at Scottish Borders Council following the award of a £92 million contract to CGI UK Ltd proved to be "a challenging journey", according to the Audit Scotland investigators.
The contract was based on a contract previously negotiated
between the City of Edinburgh Council and CGI under Public Sector Partner
procurement guidelines.
Audit Scotland says in its Best Value Assessment report on SBC: "Through its contract with Scottish Borders Council, CGI is
responsible for implementing a range of major ICT changes including: •
replacing the council’s hardware systems • replacing its finance and human
resources systems with a new integrated system: Business World enterprise and
resource planning system (ERP) • providing enhanced cyber security arrangements
and new offsite back-up facilities• developing a digital customer access (DCA)
system to help the public access council services more easily, and at lower
cost to the council.
"The agreement with CGI has allowed the council to access
the technical expertise and support of a major international company, as well
as address risks with recruiting and retaining ICT staff in the area.
"The new
Business World ERP system was implemented from April 2017, cyber security
arrangements have been improved and replacement of the council’s hardware is
ongoing. The council has experienced problems with the full delivery of the
benefits expected from the CGI contract. The implementation of the DCA was
delayed and issues arose when the Business World ERP system was first
introduced.
"Problems with third party service providers led to their removal
and other contractors were required to rectify problems, although at no extra
cost to the council. Council staff told the audit team that the new computer
systems are often sluggish and that help desk support by CGI can be
unresponsive.
"Overall, the forecast benefits from the ICT contract have not
materialised as soon as the council expected. The council’s new ICT arrangements
should bring benefits in time. It expects that a CGI ICT service delivery
centre in the Borders will boost the local economy."
In a section dealing with so-called workforce planning, Audit Scotland reports: "Workforce management has developed gradually and workforce
planning remains challenging. The council should do more to understand and act
on the views of staff.
"The council recognises that workforce planning needs to
be developed further. The council faces a number of workforce challenges. For
example, the age profile of the council’s workforce has implications for its
evolving composition in future and the recruitment activity that will be needed
to replace retirees. It may be more difficult to attract and retain officers to
senior management roles than for a larger and more urban council. The council
also faces private sector competition for staff with transferable skills at
lower grades.
"The council should do more to understand the views of staff.
We reported in 2010 that employees were concerned about the extent and pace of
change. During this audit, staff told us that they saw limited engagement
between the CMT (Corporate Management Team) and the workforce and that the CMT lacks visibility.
"Wider
staff views are unclear because there has been no council-wide staff survey
since 2010. The council should be proactive in seeking the views of the whole
workforce more regularly and provide staff with feedback. This could be
challenging for staff groups with limited access to office technology.
"The CMT
is aware of the need to improve communication with staff and began a staff
engagement programme during this audit. An ongoing series of roadshows for
staff across the Scottish Borders is being used to explain the Fit for 2024
programme and to seek the views of staff. Some further information is now
available to staff online."
On a more positive note, the report says:"There is evidence that the council undertakes effective
options appraisals when tackling significant decisions. Options appraisals and
business cases for changes to services, such as the outsourcing of ICT, setting
up a trust for delivering cultural services and developing a long-term approach
to the school estate are presented to members for consideration.
"The Audit and
Scrutiny Committee, in respect of its scrutiny functions, examines key
decisions, including assessing whether projects have achieved their stated aims
and achieved predicted savings. For example, the council’s investment in
superfast broadband was assessed and reported on at the end of 2018 and the
outsourced ICT contract was scrutinised in April 2019.
ne and a council-wide staff survey is planned for late
2019."
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