Agenda item

The Director submitted a report on the Shared IT Service arrangements with Stevenage Borough Council (SBC).  She provided historical background which culminated in the shared service arrangements.  This  aimed to provide value for money and stability of service.  The Director explained that savings had been achieved and that there was an emerging ICT strategy and significant investment particularly over the last six months.

Scott Crudgington, the Chief Executive of Stevenage Borough Council introduced his team and their areas of expertise.  Mr Crudgington reminded Members of the financial crisis which had hit the country in 2008 in terms of local government cuts and the austerity measures which had followed triggering a number of Councils to investigate partnership working arrangements; the first of which was to share revenues and benefit service arrangements.  Mr Crudgington referred to the challenges still facing both Councils  with shared IT arrangements and of the successes with shared services including revenues and benefits and the CCTV partnership working.

The Committee Chairman commented on the need to look at service provision going forward and what it could do better. 

Councillor M Casey referred to the projected savings of £400K a year cited within the business plan in the context of the outturn figures for 2016/17 and 2017/18.  He queried what had happened to the £400K savings. 

Claire Fletcher (Finance Officer, SBC) explained how the costs of moving to a shared service arrangement including staffing changes (e.g. TUPE) had impacted on the projection and synchronising of projects.  

Clarification was sought and provided on the table in paragraph 4.1 of the report submitted, in relation to retained costs by each council.  By way of example Mr Crudgington explained that SBC still held housing stock and the implication of this on IT management.  Mr Tyler explained that £386K was retained by EHDC and how this was broken down to support various services, e.g. Revenues and Benefits.

The Committee Chairman sought and was provided with clarification on the potential impact if each Council did not have a shared service arrangement.  Mr Crudgington referred to the impact on data integration, the need to develop data centres and the re-employment of staff who had TUPE’d over.

The Director explained that  if both Councils had continued to provide separate IT services, then annual costs would have risen year on year and that it was unlikely that savings would have been achieved.  She explained that both Councils now had significant resilience through a variety of means and of  the importance of investment. The Director added that the emerging ICT strategy would inform the direction of travel over the years and provide an indication of what investment levels were needed.

Councillor B Deering thanked the Officers for the report.  He  was concerned to read (in paragraph 6.11) that projects and business as usual work was “uncontrolled” and how this had impacted on maintaining day to day services.  He expressed concern about the decision to extend the partnership arrangement to 31 March 2019 to enable a revised agreement for a further three years to be approved by both Councils.  Councillor Deering suggested that  Officers should  provide further information including extraction costs,  to see if EHDC wanted to carry on with the shared arrangement .

The Director referred Members to the ever changing environment of IT and the anticipated review following the appointment of a new Shared Service Technology (Transformation) Manager.

She explained that a separate arrangement would mean increased staff costs at both sites. 

Councillor M Casey commented that it appeared to him that the savings achieved had been spent on equipment and licences.  He sought and was provided with clarification in relation to the suggestion that a third Council might be encouraged to join the shared service arrangement.

Councillor M Pope felt that there had been a lack of planning in the infrastructure phase due to the increase in costs in the life of the shared service arrangements.  The Director explained that the significant investment in supplies and services was necessary to ensure that the Council had the right platform for its services and residents.  She explained that without the right platform, it could not move forward and  there was a need to continually invest. 

The Director was keen to see what proposals the new IT Manager might have in relation to the ICT strategy and both Councils’ vision.  She explained that she would be happy to report back in terms of the developments.

Councillor M Stevenson sought and was provided with clarification by Mr Protheroe (SBC) on the use of consultants in the past and whether this would increase.

The Committee Chairman queried what other platforms had been considered.  Mr Tyler explained that many applications centred on Microsoft and it was important to consider how other applications could be supported in terms of the whole.

Councillor B Deering queried whether the Council might consider outsourcing or privatising this service, adding that it was important to have a system which delivered what was needed.  The Director commented that she was happy to review options.

Mr Crudgington acknowledged that there were some areas where improvements could be made.

Councillors N Symonds commented on the unreliability of the service and its potential vulnerability.  Mr Crudgington stated that they were doing all they could to improve resilience. 

Councillor M Pope sought and was provided with clarification by Mr Tyler (SBC) about projects to build on resilience. 

Councillor H Drake was concerned about having to adopt different approaches to different projects because Stevenage had some specific needs which EHDC did not.  She stressed the need for consolidation.  The Director assured her that synergies were discussed when any decisions needed to be made to buy new systems, adding that both Councils did a lot of things the same but some things differently.

The Committee Chairman sought and was provided with clarification by Mr Tyler (SBC) on the issue of GDPR and how and what data should be retained, anonymising data and shoring up security systems.  

Councillor I Devonshire praised the support provided by IT staff.  He was surprised that the “Cloud” could not be used to store data.  Mr Crudgington explained the difficulties moving from Office 365 to a corporate environment and the need to ensure all systems could interact with one another.

The Director explained that moving forward, it would be necessary to get the views of the new IT (Transformation) Manager.  She anticipated being able to circulate Members with further  information by Christmas 2018 and then set up another special meeting.  This was supported.

The Committee Chairman, on behalf of Members thanked all those concerned for the update.

It was moved by Councillor M Allen and seconded by Councillor M Casey that the recommendations as detailed, be supported including a recommendation to report back by Christmas 2018.  After being put to the meeting and a vote taken, the recommendations were declared CARRIED.

RESOLVED – that (A) the value for money assessment of the Shared IT Service be noted; 

(B)   current proposals to help ensure continued value for money be supported; and

(C)   Officers report back with an update by Christmas 2018.