IBM public sector deal could provide glimpse into future

IBM has signed an eight year deal with Essex County Council to provide public services in what is widely being described as a blueprint for many similar schemes that could be rolled out under David Cameron.

IBM said it will provide transformation services potentially including the design, management and delivery of front-end customer services, back-office and corporate systems; and business consulting and technology.

Reports suggest the £5.4bn deal could save 20 per cent of the council's budget in the next three years.

"IBM has demonstrated its ability to help us deliver our vision of providing the very best quality of service for our residents," said leader of Essex County Council, Lord Hanningfield.

"Working together we will also be able to keep council tax low and deliver real value for money for Essex residents. This is the most ambitious project that the Council has undertaken, and finding the right partner to help us deliver it is a vitally important step."

Ambitious, yes, and it will be very interesting to see how many other Tory councils follow suit. Privatisation of services for the sake of it is of course never good and an accusation often levelled at the Conservatives by opponents.

But given Labour's inability to manage IT projects big or small in the past ten plus years, a new approach such as this could provide an interesting glimpse into the future of public service provision.

23 Dec 2009