Council looks to India for IT support cost saving

IT systems work for Essex County Council (ECC) schools is set to be offshored to India, potentially saving up to 70 per cent in some costs.

The council has said that by offshoring components of the development and support work by Fujitsu UK to the Fujitsu Global Delivery Centre (“GDC”) in India would “significantly reduce” the cost to ECC.

The contract with Fujitsu is for a fully hosted, managed service for systems and services required by ECC staff and schools support areas including accounts payable, purchasing, payroll and HR.

It was recently extended for a further two years and discussions have been taking place with Fujitsu UK to determine where cost savings and efficiencies can be achieved.

Fujitsu UK has put forward a proposal for cost savings and efficiencies which consists of some project elements, support delivery and development work being offshored to its Global Delivery Centre (GDC) in India, under a subcontract arrangement to Fujitsu Consulting India Private Ltd.

ECC data and system residency, which includes personal data, will remain within the UK but will be accessed by Fujitsu India.

The council has said that any savings to ECC following implementation of this change would be dependent on whether work is suitable to be offshored to Fujitsu India.

It adds that although it is difficult to estimate savings the ability to offshore would provide ECC with the potential to make savings.

A report to ECC’s cabinet said: “Any saving to ECC following implementation of this change would be dependent on whether work is suitable to be offshored to Fujitsu India. This will be driven by the level of expertise required and the appetite for change from ECC.

“It is therefore difficult to estimate savings however the ability to offshore would provide ECC with the potential to make savings. For example, last year ECC commissioned 505 days of chargeable time which cost circa £400,000, whereas under the proposed new model and blended rate card, this would have cost £119,000.

“The actual cost saving to ECC going forward will be dependent on the volume of change ECC determines it needs to maintain and/or enhance system functionality.”

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Mick Ferris

Editor Email: [email protected]