Cornwall Council signs off outsourcing deal with BT

Cornwall Council has awarded a £14m outsourcing deal to BT, ending months of often heated debate and major changes to its scope. The deal will be finalised once some minor drafts to the contract are made, said a council spokeswoman.

BT’s joint services venture was scaled down from the original proposal for outsourced services to what has become known as BT-Lite. In December 2012, councillors voted for the much-reduced privatisation option, covering Cornwall’s IT department, and a joint venture with BT and regional health bodies to develop a telehealth hub.

In early March, the council’s cabinet voted in favour of inviting BT to bid for the contract.

CSC, which was originally bidding for the work, pulled out in the same month.

BT is promising savings of £17.6m over the 10-year period. This will be £1m in the first year, rising to £1.9m in the third year and each year of the contract after. BT also committed to creating 510 new jobs in Cornwall and protect 181 existing jobs in Truro.

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