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Suffolk County Council Delivering Differently

Suffolk County Council Delivering Differently. Outsourcing, in-sourcing and divestment Aidan Dunn Head of Procurement Suffolk County Council. Our ambition was to take a more commercial approach. To be a smaller and more effective Council

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Suffolk County Council Delivering Differently

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  1. Suffolk County Council Delivering Differently Outsourcing, in-sourcing and divestment Aidan Dunn Head of Procurement Suffolk County Council

  2. Our ambition was to take a more commercial approach To be a smaller and more effective Council To put a much greater emphasis on commissioning and have much lower levels of direct service provision. To improve services whilst spending less money

  3. What Suffolk has done: Between April 2011 and 2013 the Council divested nine different services and business units. Through this process: • Transferred 4000 staff out of direct Council employment • Set up contracts totalling over £75m. On 1st June 2014 SCC in-sourced its Back Office Services from a Joint Venture with BT

  4. 5 Spin outs….

  5. 2 external traders …. 2 ‘traditional’ outsources ….

  6. 1 internal trader….

  7. Why Divest ? Potential Benefits • Financial • Commercial • Flexibility and service responsiveness • Increased Community Involvement • Staff Benefit

  8. Observations & issues (1) • Suffolk County Council was ambitious in its approach to divestments and took calculated risks • Critical to the success is a service lead who is passionate, skilled and committed to ‘pulling’ the service out of the Council. • That needs to be married with a can do attitude within the Council to ‘push’ the service out. • The divestment process itself is complex and is a short term distraction from service delivery issues • It brings an absolute focus on non service issues such as back office services, governance, cashflow, taxation and legal arrangements.

  9. Observations & issues (2) • No one size fits all for the organisational form • ‘Back office’ costs and Overheads – there are step down savings to be made here too • Divestment in itself will not completely solve the budget gap, although it has a role to play in the mixed economy of services.

  10. How divestments are managed once they have left SCC

  11. Have you noticed a difference in the library service in Suffolk over the past year? • I think it is about the same 53.8% • I thinks its got better 39.4% • I think its got worse 6.8% I’m amazed that we still have such an excellent service. I moved here from the London borough of Brent where 50% of libraries have been closed. So I know how lucky I am to be here!"  Suffolk Libraries Customer

  12. How divest

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