Local government HR staff have been reassured about their jobs following a £46m deal that will target council back-office contracts.
Support services group Mouchel Parkman bought outsourcing firm HBS earlier this month. The group’s chief executive, Richard Cuthbert, told Personnel Today that the group was already looking to secure a number of council contracts in Tyneside. But he insisted a ‘partnership’ approach would be taken and that existing employees should have the opportunity to work for the new organisation.
“The prospect is for a partnership between the public and private sector, and the main opportunities are currently in the northern metropolitan councils,” he said.
“This means that some form of joint venture will deliver the services in future – the staff may be seconded or transferred under TUPE [the Transfer of Undertakings (Protection of Employment) Regulations].”
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Mouchel Parkman and HBS already work together on a £300m, 12-year strategic partnership in Oldham through the Unity Partnership. It also recently won preferred bidder status for a 10-year partnership with Somerset County Council.
“The business process outsourcing market in the UK is currently worth more than £4bn, growing at nearly 10% per year,” said Cuthbert. “We see great potential for increasing our market share in local government.”
