Southampton to outsource HR in £150m 10-year deal

Southampton City Council is planning to outsource some of its HR services, as part of an overall 10-year outsourcing deal worth up to £150m.

The council’s Organisational Futures programme involves a private sector partner providing the skills, capacity and investment needed to overhaul its support services. Its immediate ambition is to make annual efficiency savings of £1.2m in the next two years by outsourcing services such as IT and property as well as some HR functions.

Through the venture, the council expects to shed about 250 staff posts, although at this stage it believes these will result from natural turnover rather than compulsory redundancies.

“We cannot get better by standing still,” said Adrian Vinson, leader of Southampton City Council.

“We are determined to continue to improve. The people who pay their tax here and use our services deserve the best.

“A lot of the expertise exists within the council but we don’t have all the answers. We now need a partner with the same enthusiasm and focus as us to help us move forward quickly and smoothly.”

The contract is valued at £10m to £15m per year for an initial 10-year period, with a possible extension of up to five years. The shortlisted bidders are expected to be invited to tender by the end of October.

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