The Cabinet Member Decision Meeting of Barnet Council authorised the insourcing of IT end-user and managed infrastructure services, bringing the provision back in-house from 1 October 2026. This decision was made after a preferred bidder for a new IT contract sought to significantly increase its costs post-submission, leading the Council to abandon the procurement process and opt for an in-house solution.

IT End User and Managed Infrastructure

The meeting authorised the Executive Director for Strategy and Innovation to take all necessary steps to bring IT end-user and managed infrastructure services in-house from 1 October 2026. This decision followed the abandonment of a procurement process for a new IT contract. The Council had initially sought a new provider through a mini-competition under the Crown Commercial Service (CCS) Framework RM6190 Technology Services 4. However, the preferred bidder, Ultima Business Solutions, attempted to renegotiate its bid price upwards after submission, which was not permissible under procurement rules. This led to the rejection of their bid and the subsequent abandonment of the procurement.

Councillor Barry Rawlings, Leader of the Council and Cabinet Member for Strategic Partnerships, Economy and Effective Council, explained that the original business case had favoured insourcing, and a review had confirmed the financial and service benefits of this approach over a hybrid model. He noted that the attempted renegotiation by the preferred bidder highlighted the risks associated with finding a suitable partner for a hybrid model.

Councillor Peter Zinkin, Leader of the Conservative Group, raised concerns about the potential risks of insourcing, particularly regarding single points of failure and innovation. He questioned how these risks would be mitigated. In response, it was explained that the Council had budgeted for the full costs associated with insourcing, including pension and redundancy costs, which had made the in-house option financially comparable to the revised bid from the external supplier.

Regarding the risk of staff loss, it was noted that most IT staff were keen to transfer to the Council, mitigating the risk of knowledge loss. The Council also has agreements with specialist IT consultancy contractors, such as Matrix, to provide support and technical resources when needed. Furthermore, the Council has completed its IT modernisation projects, migrating networks and data centres to the cloud, and is moving towards a consumption-based IT model. To manage this new model, the Council is bringing in procurement and contract management expertise, including an IT procurement specialist.

The meeting also authorised the Executive Director for Strategy and Innovation to manage the implementation of TUPE (Transfer of Undertakings (Protection of Employment)) regulations and the transition of the workforce from the incumbent supplier, Capita Business Services Ltd, to the London Borough of Barnet. The risk mitigation plan for the insourcing will be shared with the Cross-Party Member Reference Group. The decision was deemed urgent and exempt from the call-in procedure, with agreement from the Chair of the Overview & Scrutiny Committee.