Outsourcing Toolkit

BT, South Tyneside sign shared-services deal

Kable

Published: 10 Sep 2008 11:10 BST

BT is placing its UK local-government headquarters in South Shields as part of a £184m deal with South Tyneside Council.

The 10-year contract will cover the delivery of a number of key council services, including the development of a centre for shared services.

A new business organisation, known as BT South Tyneside, a wholly owned BT subsidiary, will be created. According to the company, it will create 1,250 jobs in the region.

Read this

How to beat other candidates to an IT manager job

Playing up non-technical attributes can help convince a CIO that you're right for an IT manager role...

When BT was announced as preferred bidder for the contract, South Tyneside Council said that around 450 of the council's 7,000 staff would transfer to BT under the deal. The firm will establish its UK local-government headquarters at South Shields, within South Tyneside's boundaries.

Council leader Iain Malcolm said: "The ultimate objective of this partnership is to set about the sustainable development of a knowledge economy in the area. This would not be possible without the full range of measures proposed by BT, tailored to the local economic and demographic requirements of South Tyneside."

The partnership aims to deliver better services, as well as make savings for the council. Oer the 10 years, the savings are predicted to be in excess of £28m. The figure will be delivered through improved efficiencies in areas such as ICT and self-service, said BT.