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Serco selected for strategic partnership with Peterborough City Council to reduce costs and improve services

Date: 26 Oct 2011

Serco Group plc (Serco), the international service company, today announces that it has been confirmed preferred bidder for a new strategic partnership with Peterborough City Council in the UK, to transform the quality of local services for citizens and deliver £20m of savings to the local authority.

With an initial contract value of £100m over 10 years, the contract will also include an agreement to add supplementary services as well as an option to extend for two further five-year periods. The new partnership contract is due to start at the end of November and is in addition to the existing 11-year £44m ICT contract awarded to Serco in 2009. Peterborough City Council's in-house shared services venture - known as Manor Drive - will transfer to Serco along with delivery of front-line and back office support services ranging from customer services, finance, revenues and benefits collection and payment, and property services.

Cost savings are expected to be more than £20m over the life of the contract. In addition, the Partnership will also support Peterborough's ambition to be the UK's Environment Capital with activities looking to build on the progress that has already been made in creating the conditions for growth and sustainability in the region. Around 450 members of staff are expected to transfer to Serco under TUPE regulations.

Working in close partnership, Serco and Peterborough City Council will also be responsible for the authority's ongoing business transformation programme. Internal systems and processes will be re-engineered to reduce duplication and improve efficiency. More flexible, responsive and productive working processes will be introduced, such as more streamlined customer experiences. Such initiatives will deliver service improvements for Peterborough residents and support transformation across the wider council and other public sector agencies in the east of England.

Commenting on the announcement, Councillor Matthew Lee, Deputy Leader of Peterborough City Council, said: "As a council we pride ourselves on our forward thinking and open-mindedness to involving the private sector where it can deliver genuine benefits for our residents.

"Our existing shared services approach successfully delivered service improvements and efficiency savings. With Serco's experience and expertise, we have a partner that can help us take this approach to the next level and drive our transformation programme for the next ten years. We look forward to supporting Serco to create a market-leading regional hub that supports our local economy and regeneration plans."

Christopher Hyman, Chief Executive of Serco Group plc said "We're delighted to have been selected as preferred bidder by Peterborough. The results from our strategic partnerships with Glasgow City Council and Hertfordshire County Council demonstrate clearly the benefits of this ground-breaking approach to service delivery and transformation. We are absolutely committed to a partnership approach that will directly support the council's goals for improved and more efficient service provision. Working together, Serco and Peterborough City Council are poised to deliver services which also reflect broader targets for economic regeneration and the development of sustainable and skilled jobs within and around the city."

For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 208 334 4122
Dominic Cheetham, Director of Corporate Communications T +44 (0) 208 334 4334
Marcus De Ville, Head of Media Relations T +44 (0) 208 334 4388

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Last Updated: 26 Oct 2011