Southwark signs £26 million IT deal with Serco

Southwark Council is set to shave 3 million from the cost of managing its desktops, servers and applications in a five-year outsourcing deal with services group Serco worth 26 million.

The south London authority chose Serco to upgrade and remotely manage its IT infrastructure. The five-year modernisation plan is expected to lead to 3 million in efficiency savings, while the use of energy saving equipment and systems could add another 230,000 in annual savings.

Serco has worked with Southwark Council for the past six years, supplying ICT and project management services. Kevin Lavery, chief executive of the Serco Solutions division, said: "It has already been proved that our two organisations can work together effectively and this agreement strengthens our relationship."

To encourage the borough's economic development, Serco will work with local suppliers and has already chosen Southwark-based Laserlife to maintain the council's printers.

Bill Murphy, director of corporate and customer services at Southwark Council, said: "The proposals for the renewed contract are extremely innovative and the agreement will enable us to empower the community and generate wider investment into the borough."