This report sets out the proposed approach to the design and implementation of the ICT Future Operating Model and seeks authority to enter into a contract with a Design and Transition Partner.

The Director of Resources submitted a report setting out the proposed approach to the design and implementation of the ICT Future Operating Model which would follow the end of the current ICT outsourcing contract with Northgate Public Services.  The report also sought authority to enter into a contract with a Design and Transition Partner to provide the specialist expertise and capability required to achieve the rapid transition required.

The report noted that the Council currently had a full outsourcing arrangement, under which overall responsibility for the delivery of ICT services has been transferred to Northgate Public Services, with minimal core ICT capability retained in the Council.  The contract would expire in March 2021 and contained no further provision for extension.  A scoping and a high-level options analysis carried out in 2019 had concluded that a like-for-like reprocurement of an outsourcing arrangement of the current broad scope was unlikely to offer value for money.  It was therefore proposed to adopt a "smart-sourced" approach, in which services were grouped, and each group sourced in the way which represented best value for money, with options including commodity procurements via Government frameworks, shared resources or services with other public sector organisations, managed service procurements and insourcing where appropriate.  The various services would be managed, and brought together to deliver a coherent and effective experience for users, by an in-house service integration and management team.

The report explained that the next stage of work would be a Design Stage to develop a business case making recommendations for the design of the FOM, which would be submitted to a future meeting of the Committee. The design stage would also plan the procurement, implementation and transition work needed to achieve transition by 31 March 2021 and identify and initiate any work that needed to be started immediately to inform the business case and transition planning, such as pre-contract procurement activity.  The Design Stage and subsequent procurement implementation and transition would require external expert support, and a mini-competition for a Design and Transition Partner (DTP), under a Government framework had therefore been launched.  The report sought authority for the Executive Director of Resources, in consultation with the Assistant Director for Procurement and Chief Digital and Information Officer, to appoint a DTP through the ongoing competition and to place work with the DTP as necessary up to a value of £750k.

Resolved –

(1)     That the proposed approach to the design of, and implementation planning for, the ICT Future Operating Model be endorsed;

(2)     That the Executive Director of Resources, in consultation with the Assistant Director for Procurement and Chief Digital and Information Officer, be authorised to enter into a contract with a Design and Transition Partner to enable the design stage of the project;

(3)     That a detailed business case setting out the Future Operating Model be submitted to a future meeting of the Committee.