Council set to save £50m through new ICT contract

The City of Edinburgh Council is set to approve a report naming CGI as the preferred bidder to deliver a new ICT contract worth £186m.

  • Contract worth £186m over seven years
  • Will save Council a minimum of £45m over term of contract
  • Worth an additional £46m thanks to provision of further essential services at no extra cost
  • Secondary schools to receive up to 50 times greater bandwidth and primary schools up to 100 times greater
  • Massive boost to Council’s channel shift programme
  • Creation of 221 new jobs and 60 modern apprenticeships in Edinburgh

This would transform Council services and save a minimum of £45m over the next seven years.

Councillors will consider the report at a meeting of the Finance and Resources Committee on Monday, 3 August 2015. The report outlines how the contract will deliver £45m of savings while an estimated additional £46 million of essential services will be provided at no extra cost. The contract would also create over 200 jobs locally and in addition, over 60 new Modern Apprentice opportunities.

One of the most significant improvements is that schools would benefit greatly from the new contract as bandwidth in secondary schools is set to increase by up to 50 times, and by up to 100 times in primary schools. This would provide students throughout the city with greater access to online educational tools. 

In addition, the new contract would smooth the way for the next phase of the Council’s channel shift programme, which is about moving customers to the most efficient and suitable channel for their needs. This includes encouraging residents to engage with the Council and carry out their transactions online.

Edinburgh is also the first local authority in Scotland to propose a contract which could be used by over 50 other public sector organisations. Small to medium sized businesses in the city would also benefit as CGI is proposing to place business worth 25 per cent of the value of the contract with the SME sector.

Councillor Alasdair Rankin, Convener of the Finance and Resources Committee, said: “As a Council we are currently going through a sea change in the way we do business. The Council must reduce its costs by at least £107m over the next five years.

This level of proposed saving is very significant and IT will be vital to help us transform and meet our savings challenge. If approved, this contract will make us more efficient and effective when delivering services.

“Providing young people with the latest online tools is essential and I am confident that this massive increase in bandwidth will greatly improve educational opportunities for all students throughout the city.

“It will also speed up our channel shift programme, giving residents greater flexibility to engage with and carry out their transactions with the Council online.

“We are also leading the way as the first local authority in Scotland to propose a contract which can bring great savings to over 50 other organisations looking to improve their ICT capabilities. SMEs contribute almost £10 billion to Edinburgh’s economy each year and I am encouraged to see that they would also be nurtured under this new contract.”

About CGI

Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world. Approximately 68,000 professionals serve thousands of global clients from offices and delivery centers across the Americas, Europe and Asia Pacific, leveraging a comprehensive portfolio of services including high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management as well as a wide range of proprietary solutions. With annual revenue in excess of C$10 billion and an order backlog exceeding C$20 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB).

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