Oldham outsources IT to Computacenter

Tags: ComputaCenter efficiency GP Infrastructure NHS Oldham Outsourcing PCT

27 Nov 2009

NHS Oldham has outsourced its IT services to Computacenter in a four year deal worth £650,000 a year.

The primary care trust says the deal has already saved it 10% on its previous arrangements, provided by a PCT-run shared service. It estimates savings of a further 25% over the next year to 18 months.

Stephen Sutcliffe, executive director of finance at NHS Oldham, said the predicted savings did not account for the potential to save money through creating a more productive workforce which he said could run into “millions and millions.”

Sutcliffe told EHI Primary Care that the initial contract covers the 1,000 staff working for the commissioning and provider arms of the PCT and will be extended to cover GP practices as well.

Sutcliffe said Computacenter was selected because it was able to provide better value for money and because it had the commercial expertise the PCT wanted.

He added: “One of the main things that I was looking for was that IT wasn’t an issue. We want our services to be assisted by IT and not hampered by it. We wanted a good solid infrastructure and I think we’ve now got that.”

Sutcliffe said Computacenter was also helping the PCT to introduce mobile and remote working, telehealth initiatives and integration between health, social care and education.

Sutcliffe added: “We have an ambitious plan in Oldham that we are moving towards with an integrated model of care and we don’t want IT to be a barrier to that with systems that don’t talk to each other.”

NHS Oldham said the £650,000 a deal also included an agreement that any efficiencies generated by Computacenter would be reflected in the price agreed for the following year.

Sutcliffe added: “What we are about is delivering health outcomes for the population of Oldham and this is about making sure our clinicians can work in the best possible way and make use of innovation from other sectors.”

The deal with NHS Oldham is one of several contracts Computacenter has with the NHS including hospitals, commissioning groups and NHS trusts as well as involvement in the delivery of Microsoft's Enterprise Agreement with Connecting for Health. Other public sector clients include Ordnance Survey, KentPolice and London Underground.

Chris Price, public sector director at Computacenter, said NHS Oldham was leading the way in outsourcing the management of its IT to technology experts.

He added: “"With pressure now to find at least £15 billion in savings across the NHS by 2014, it is crucial that primary care trusts look to optimise their IT processes and take advantage of economies of scale by outsourcing IT provision.

"This will enable them to reduce costs significantly and spend more time with patients."

Fiona Barr

Capita wins £3.3m outsourcing deal (22 Sep 2009)
Nicholson warns of ‘unprecedented’ savings (22 May 2009) (1)

Reader's Comments

High Risk

01 Dec 09 22:12

Very rarely have I seen outsourcing work. Those that have done it wished they never did, but again that all depends on the robustness of the contract. Many organisations find themselves managing the contractor for failure to deliver.

The savings suggested 10% already, bot great when balanced against the risk and then 'estimated' savings, well there is a contractural cop out!!

Good luck

Wait and see but not convinced

bob.smith@nhs.net

02 Dec 09 11:12

It is very brave for a finance director to say such savings will be realised. The common experience is that such savings are short term and costs rise when the service deteriorates.

I wish them every success and will be interested in the progress.

Interesting

02 Dec 09 12:12

Another outsourcing deal in the NHS!

The previous one being; http://www.e-health-insider.com/news/5400/siemens_wins_west_london_lan_deal

Is this a sign of things to come?

Should existing NHS ICT staff be concerned?

I say yes

02 Dec 09 13:12

Delivering health care is key to the NHS not delivering IT, so outsourcing is a viable option.

I know everyone will say that IT is key to the NHS but so is garbage collection to the councils and this has been outsourced, as is key parts of Network Rails IT and many other organisations.

The reason this will not accelerate is people protecting their own jobs.

Lets hope the outsourcers are domain-sensitive

jean@hcjean.demon.co.uk

02 Dec 09 14:12

The scope/depth of the contract is unclear but if it extends past keeping the technology and applications operational then I hope the company is considering putting its staff up for registration under UKCHIP. There will be person-identifiable data being handled, and priorities / issues have a sensitivity because they are to do with individual's health; responses will need to be made not in 'first come, first served' but ICU / SCBU (for example) first. All the governance, ethical and legal aspects of handling data under subject consent should be understood and adhered to.