Government Procurement Service award a framework agreement for payroll, HR and finance to Logica to help make significant cost savings for public sector

14 December 2011


Shared services framework available for the support of over 4.5 Million employees in the UK

Logica, a leading business and technology service company today announced it has been awarded a framework agreement for payroll, human resources (HR) and finance services by the Government Procurement Service, an executive agency of the Cabinet Office.

The new framework will enable any Central Government, police, education, local authority, health and any partially funded or fully funded public sector entity to benefit from shared services without a complicated or expensive procurement cycle. Centralised government frameworks such as this are expected to help save the government £3bn per year* through reduced procurement costs and better contract value.

The new framework includes payroll services, HR systems, HR outsourcing, outsourced training and integrated financial and accounting systems. By sharing in the economies of scale and total cost of ownership, public sector organisations can benefit from end to end services that will enable them to effectively and efficiently run their operations. Organisations which join the framework will reduce the cost of their back-office services enabling them to focus on delivering services to citizens.

By choosing to use the framework public sector clients benefit from proven services as Logica is already providing HR services to more than 80 public sector organisations as part of a previous framework which was signed in 2002.

Ed Jones, Managing Director of Public Sector at Logica in the UK said, “In the current economic environment it is vital that public sector organisations make cost savings but this can’t be to the detriment of the services they provide for citizens. Shared services for back office functions such as HR and finance are a significant step to help public sector organisations save money, whilst enabling them to focus upon their core business.

Logica has a long history of offering business process outsourcing and technology services to public sector organisations and being awarded this framework is testament of our ability to offer the best value to the public sector in a period when efficiency is more important than ever,” continued Jones.

Marie-Helene Durif, Head of Sourcing and Category Management at the Government Procurement Service said, “The award of this contract is another milestone in the Government’s strategy to centralise procurement, which will deliver significant and sustainable cost reductions for Government.”

Benefits of the framework include:

  • Benefit from Logica’s managed services team which has built up a unique experience of public sector payroll and HR requirements over 10 years under the previous framework agreement
  • Avoiding the need for lengthy and costly OJEU procurements thus saving cost and accelerating the time to achieve a return on investment
  • Charges are scaled to overall framework membership – the more organisations join the framework the cheaper the charges are for customers, both new and existing
  • Cost sharing principle – shared costs for mutually beneficial developments for example reducing the costs of adhering to changes in payroll legislation
  • Defined public sector focus and tailored services – best of breed solutions and forums to share experiences
  • Best practice and current technology – independent audit and evaluation to ensure value for money
  • Flexibility of solution – the framework is technology agnostic so the most appropriate technology platform can be offered to individual clients
  • Future changes to configuration are under the control of the client
  • Organisations can elect to outsource as much or as little of their HR/Payroll processes as they want
  • Standard contract but with the ability to agree individual service level requirements
  • Robust User Group led by the Government Procurement Service to ensure individual organisations are treated the same irrespective of size.

The Government Procurement Service Framework agreement with Logica will enable public sector organisations to obtain best value for money whilst reducing procurement cycles. Participation in the Framework does not require an OJEU process and is achieved through an accelerated procurement cycle, fully compliant with current procurement guidelines.

*Francis Maude, Minister to Cabinet Office, http://www.cabinetoffice.gov.uk/news/government-saves-over-%C2%A31-billion-procurement

About Logica

Logica is a business and technology service company, employing 41,000 people. It provides business consulting, systems integration and outsourcing to clients around the world, including many of Europe's largest businesses. Logica creates value for clients by successfully integrating people, business and technology. It is committed to long term collaboration, applying insight to create innovative answers to clients’ business needs.

Logica is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG). More information is available at www.logica.com.

The company is a public company incorporated and domiciled in the UK. The address of its registered office is 250 Brook Drive, Green Park, Reading RG2 6UA, United Kingdom.

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