ICT Service Delivery Recommendation - North Lanarkshire ...

North Lanarkshire Council Report

Transformation & Digitisation Committee

☒approval ☐noting Ref GR/EW/WRev2021 Date 17/11/21

ICT Service Delivery Recommendation

From Katrina Hassell – Head of Business Solutions

E-mail [email protected] Telephone 07903 096 121

Executive Summary

North Lanarkshire Council (NLC) currently provides ICT support to elected members, services, and arms-length bodies through a combination of in-house and outsourced resources, with the latter being governed through the ICT Service Delivery contract extension approved by the Transformation & Digitisation Committee in September 2019. WIPRO Holdings (UK) Limited (Wipro) presently deliver the existing ICT Service Delivery contract, this is due to expire on 31 March 2022. The contract has scope to be extended for a further and final two years to 31 March 2024. This report is a follow-up to the report to committee of 17 May 2021 – ICT Service Delivery Options, at which recognition was given that the current contract model was not aligned to the Plan, nor adequately reflected the changes to the organisation over the previous years or planned coming years. Committee provided approval to negotiate with the incumbent provider Wipro, and to also plan for a return to inhouse provision should such negotiation fail to effectively align with the Council’s overarching strategic goals. This report updates committee on those negotiations and the associated analysis, to ultimately recommend the Council insource to return to in-house service delivery effective from April 2022.

Recommendations

The Transformation and Digitisation Committee are requested to: 1. Note the available options and assessment thereof, and; 2. Approve implementation of option D, to insource operations from April 2022.

The Plan for North Lanarkshire

Priority All priorities

Ambition statement All ambition statements

mailto:[email protected]

1. Background

1.1 In May 2021, the Transformation and Digitisation Committee authorised Business Solutions to negotiate with Wipro to ‘right-source’ a service delivery contract variation, and to undertake the activities needed to progress planning for expiration of the Wipro contract and the subsequent return to inhouse provision should such negotiation fail to align with the Council’s overarching strategic goals.

1.2 The current contract extension period is due to end on 31/03/2022 but has an option to extend by another 2-year period from 01/04/2022 to 31/03/2024.

1.3 The value of the current contract period approved by Committee in September 2019 resulted in fixed costs of £1.621m and £1.597m applying for financial years 2020/21 and 2021/22 respectively. This variation delivered cost savings of £0.525m over the 2 years (comparable to previous contract terms), and crucially, removed the variable cost of annual volume settlement for those two years. A retrospective settlement of £0.160m was paid in lieu of volume adjustments incurred during the final year (2019/20) of the base contract. In finalising this contract variation, Wipro also formally committed prices for the final two-year extension (2022-23: £1.595m; 2023-24: £1.627m) which therefore represents the baseline for these contract negotiations.

1.4 The paper of 17 May 2021 set out a summary of key changes since the previous approval of the initial 2-year extension, including:

• Insourcing of Culture Leisure North Lanarkshire (CLNL) Ltd

• Staff Transfer: from Education and Families, IT Technical Services to Business Solutions (in progress)

• Town Centre hubs vision

• Reduction in Corporate Building Estate (in progress)

• Home and agile working classification

• Community Boards (in progress)

• The impact of the DigitalNL programme (in progress)

Further, it explored how these changes and the overall Vision and Plan for North

Lanarkshire, had resulted in the existing contract no longer being fit for purpose.

1.5 The paper then provided a brief technical explanation of the core service components of the contract, aligning these to inhouse and insourced operational teams, demonstrating areas of overlap and potential for efficiencies, including an FTE resource breakdown. These relevant areas are summarised below:

• Service Desk function (Service desk analysts, 1st line fix)

• Deskside support (End user device management and support, local networking, application deployment, Installation, Move, Add, Change, Disposal)

• Enterprise Server and Storage (Core infrastructure components across datacentres and cloud, including Unix computing capability)

• Enterprise Network and Security (Datacentre, Local Area and Wide Area Networking)

• DevOps (Application development and operations, Line of Business application support)

• ITIL Service Delivery management functions (Incident, Problem, Change)

1.6 The current contract includes the provision of operational tooling, i.e., tools associated with the functional delivery of the service. Predominately this comprises the use of an ITSM (Information Technology Service Management) tool (ServiceNow), customer portal and dedicated telephony service.

1.7 The paper then explained the options appraisal undertaken, considering these factors and included a SWOT analysis and Risk appraisal against Council Strategic Goals.

1.8 Although the current contract is performance based rather than resource specific, the Council understands through details supplied by Wipro that the current structure of the delivery team constitutes 26 direct Wipro employees and seven external staff who perform the Service Desk Analyst role.

1.9 Wipro have informed the Council that of the direct employees, three are exempt from any TUPE consideration to NLC due to their contracts and that of the seven external staff, three are in scope for transfer under TUPE. A full due diligence exercise will follow to ensure the council effectively meets its duties to inform and consult.

1.10 A contract exit management plan is a requirement of the contract between the Council and Wipro, with such reviewed and updated annually to date. Business Solutions officers therefore have good awareness of the scope and terms of the Exit Plan which will, subject to committee approval, be invoked.

1.11 When considering the right-sourcing of the overall requirement, multiple options were reviewed and ultimately narrowed down to three for in depth analysis. These options for ICT Service Delivery have been analysed and costed based on the data provided by the Service Delivery partner, Wipro. All three options have elements of TUPE, from Wipro to Council, involved.

1.12 Business Solutions presently has a recurring revenue budget of £1.597m to fund

service activity delivered by Wipro. Recognising that Wipro have regularly referenced this as a financially challenging contract, with such having to be addressed as part of any contract extension, an additional £0.5m cost pressure has been included within the Medium-Term Financial Plan 2022/23 to 2026/27 considered by the Policy and Strategy Committee in September 2021. An annual revenue budget of circa. £2.1m has therefore been factored into the options assessments around financial affordability and suitability.

1.13 All options for future delivery of ICT have been discussed on the understanding

that the inclusion of support for the former North Lanarkshire Leisure (NLL) estate was required.

2. Report 2.1 Options considered within this report are as follows:

• Option A – Provision of the Wipro Managed Service as is with adjusted volumes to include the recent insourcing of Culture Leisure North Lanarkshire Ltd. Members are advised this option is here to provide a baseline comparison only, as poor overall alignment with The Plan and future council requirements resulted in this being removed from further detailed assessment within the previous committee paper.

• Option B – Provision of a reduced managed service, including Service desk, ITIL functions, provision of Service Management platform (ServiceNow) and Unix computing services via an onshore (UK based) delivery. This option would also see the technical functions of Enterprise Servers & Storage, Enterprise Networks, Deskside Support insourced.

• Option C – Provision of a reduced managed service, including Service desk, ITIL functions, provision of Service Management platform (ServiceNow) and Unix computing services via an offshore (non-UK based) delivery, with Enterprise Servers & Storage, Enterprise Networks, Deskside Support functions insourced.

• Option D – Fully insourced Assessment of Options

2.2 Option B involves the insourcing of 17 roles/employees from Wipro to NLC with the

remaining roles, comprising 9 Wipro and 7 Service Desk staff retained within the

contract. The employees being insourced would be placed in a variety of teams

within the Infrastructure area of Technology Solutions. The roles remaining within

Wipro consist of service desk agents, change management, incident/problem

management, procurement, ServiceNow, UNIX support and Contract Delivery

Management.

2.2.1 Costs are discussed within the financial impact section, however an approximate

total cost for this option is circa £4.77 million over the course of the next two years

with a TUPE element of circa £1.57 million included in that overall cost. This is the

most expensive option when compared to both the £3.223m baseline and recurring

revenue funding level presently reflected within the Medium-Term Financial Plan.

Selecting this option would require the Council to build an additional funding

requirement into its revenue budget 2022/23 considerations.

2.2.2 This Option would require agreement to be reached between NLC and Wipro and

would also carry risk from a procurement perspective in respect of potential

changes to the existing contract.

2.2.3 This option scores as a Yellow Minor risk with an overall average likelihood of 3

and impact score of 2. The option scores most significantly in likelihood for financial

impact.

2.2.4 In terms of alignment with the corporate goals this option is the second highest

scorer with minimising risk, maximising influence, and history/experience of a

proven service delivery.

2.2.5 In summary this is the most expensive option, may give rise to significant financial

risk and does not align well with the Council’s future strategic direction.

2.3 Option C also insources 17 roles/employees from Wipro to NLC with the remaining

roles, comprising 9 Wipro and 7 Service Desk staff retained within the contract. The

employees being insourced would be placed in a variety of teams within the

Infrastructure area of Technology Solutions. The roles remaining with Wipro

consisting of service desk agents, change management, incident/problem

management, procurement, ServiceNow and UNIX support would all be delivered

offshore, with only Contract Delivery Management remaining in the UK.

2.3.1 The advantage of this option is a slightly reduced service delivery cost (against

baseline new cost) but is approx. £350k p/a higher than current costs. It should be

acknowledged that offshore working may negatively impact reputation and includes

a transitional period that is likely to be service disrupting.

2.3.2 The approximate total costs over the next two years would be £3.92 million with

circa £1.57 million included with regards TUPE.

2.3.3 As with option B, this Option would also require agreement to be reached between

NLC and Wipro and would carry risk from a procurement perspective in respect of

potential changes to the existing contract.

2.3.4 In addition careful consideration would be required in relation to data protection

issues as progressing this Option would require data to be transferred

internationally.

2.3.5 This option scores an Amber risk meaning this is the riskiest option overall. This

option carries a likelihood score of 4 due to it giving rise to significant financial,

organisational change (both insourcing and offshoring) and reputational impacts.

There are also significant concerns around time to recover for NLC.

2.3.6 This option scores the same as Option B on alignment with the corporate goals.

2.3.7 In summary this option is cheaper than Option B but potentially reputationally

damaging, the risk assessment is higher and alignment with the future direction for

NLC is poor.

2.4 Option D insources all roles to NLC. As stated within paragraph 1.7 the information

provided by Wipro is that the current staffing complement utilised by Wipro to

deliver, comprises 26 direct employees and 7 other staff. As further stated within

paragraph 1.9, 23 Wipro employees would be eligible for TUPE, as would 3 of the

7 Service Desk Analysts, however it must be recognised that to maintain existing

service performance those seven (7) roles will be required to be recruited or

sourced via Agency services.

2.4.1 Transitioning to in-house delivery will remove overlap and points of friction between

delivery partners, it allows NLC to own and control resource allocation to meet

need, however it does bring challenge and risk, particularly around TUPE transfers

and the removal of a partner with a global presence.

2.4.2 As noted in paragraph 1.6 another important element is operational tooling and the

complete insourcing of the service necessitates the provision of a new Council

dedicated ITSM solution. Wipro and other 3rd parties have been approached to

provide indicative costings for implementation and licensing of a new ServiceNow

instance. These costs are incorporated into the overall figures for Option D, with

the SWOT analysis and Risk assessment considering the impact of change. Other

technical tools may be required, but this would be explored as an opportunity to

consolidate and innovate, before purchasing. There is an element of risk from a

procurement perspective as the timescales to complete the necessary ‘tooling’

procurements are challenging.

2.4.3 The approximate total costs over the next two years depend upon whether

insourced employees choose to retain existing contract conditions or are offered

and accept NLC contracts but for the purposes of the option appraisal, these are

estimated at circa. £3.791 million. For consistency of understanding the TUPE

element of this amounts to £2.528 million. This option brings the most change and

hence is risky, but it also brings opportunity for consolidation across the service as

a whole, has clear alignment with the strategic goals of the organisation, particularly

the community-based model, and is the most economically viable of the options.

2.4.4 This option scores as a Yellow Minor risk with an overall average likelihood of 4

and impact score of 2. The option scores most significantly through impact on time

to recover.

2.4.5 This option scores highest when assessed against alignment with corporate goals.

2.4.6 In summary this option has the highest alignment with the Council’s future strategic

direction, is the most cost effective and allows NLC to regain complete control over

technology solutions delivery.

2.5 The existing contract with Wipro can only be extended for two further years, with

the Council therefore required to consider its future requirement for Service

Delivery almost immediately following extension in March 2022. Assuming a further

partnership was required; tender documents would need to be ready for market by

March 2023 with contract award approved no later than September 2023 to ensure

a smooth transition between providers.

2.6 Previous experience within this area highlights the resources requirement to carry

out such an exercise is significant and costly to the organisation.

Conclusion

2.7 It is the finding of this report that the most appropriate future course for NLC is to

choose Option D and insource the entire managed service. It is the most financially

prudent option, with some headroom currently available to manage uncertainties,

unexpected costs, and project work. Furthermore, this option provides the greatest

scope to stimulate the local economy, through maximising the number of local jobs

maintained, and creating maximum flexibility for the Council to vary this support

service to suit changing need in line with The Plan on an ongoing basis.

3. Public Sector Equality Duty and Fairer Scotland Duty

3.1 Fairer Scotland Duty

Whilst the wider ambitions of the DigitalNL programme look to address digital equality across the North Lanarkshire area, there is no direct impact because of this report, which is seeking to determine the most appropriate option for providing ICT support to the business in a manner that allows them to progress at a rate which will facilitate the ambitious programme of work.

3.2 Equality Impact Assessment

There is no direct impact because of this report.

4. Impact

4.1 Financial Impact

4.1.1 The table below captures the estimated cost for each option for the next two years.

As noted in paragraph 1.3 the cost previously quoted by Wipro for the final two-

year extension was £3.223m. In comparison to the new Baseline costs supplied as

part of these contract negotiations (Option A), this is an increase of c £1.3M over

the two-year period.

Option A - Baseline B - Onshore C - Offshore D - Insource

One Off charges £0.345m

yr1 – Wipro charge

£2.236m £1.600m £1.250m -

yr1 – Insource cost

- £0.789m £0.789m £1.723m

yr2 – Wipro charge

£2.280m £1.600m £1.100m -

yr 2 – insource cost

- £0.781m £0.781m £1.723m

Total £4.516m £4.770m £3.920m £3.791m

4.1.2 Options B, C, and D all bring potential ongoing annual obligations, primarily in respect of pay awards and annual increments, where appropriate.

4.1.3 In line with paragraph 1.12 above, Business Solutions had previously identified the

imminent budget challenges associated with this contract as part of the Medium-

Term Financial Plan (MTFP) and overall budget master process. Following the

Current Service Provision (CSP) process, a request for £0.500M of additional

funding for ICT Service Delivery on a per/annum basis, was made and accounted

for by Financial Solutions.

4.1.4 Financial calculations for insourced staff have been calculated at the top of the

relevant NLC scale and include impact of employer’s Pension, NI, and

apprenticeship levy contributions, as well as a budgetary estimate for further linked

employee costs within year two (contained within One-Off charges), should any

opportunity for consolidation of roles arise.

4.1.5 All employee-related costs have been based on Wipro figures supplied in a non-

person identifiable manner. In accordance with the draft Wipro-NLC Exit Plan,

Wipro are required to provide a detailed updated TUPE transfer list no later than

twenty-eight (28) working days prior to expiry of the existing contract. Given this,

there is therefore a necessary degree of uncertainty and flexibility factored into

these financial calculations.

4.1.6 Whilst TUPE transfers for options B, C and D could give rise to a need to incur one-

off external legal costs in the current financial year, such are not presently reflected

within financial calculations as the Heads of Legal and People and Organisational

Development have indicated they will endeavour to support the transfer process

using in-house resources in the first instance. Option D does however recognise

one-off costs will arise from implementing a new IT Service Management platform,

End-User device replacement, and monitoring solutions. It is envisaged these will

be managed within the recurring revenue budget available (£2.1m per annum).

4.2 HR/Policy/Legislative Impact

4.2.1 The current contractual provisions provide that upon termination of the contract,

this would give rise to a relevant transfer in terms of the Transfer of Undertakings

(Protection of Employment) Regulations 2006 (‘the TUPE Regulations), with

transferring staff’s contracts of employment having effect after the transfer to NLC

as if originally made between the employee and the Council. NLC would acquire

all rights, powers, duties, and liabilities under or in connection with the contracts of

employment of transferring employees, which means that the terms and conditions

of employment for existing Wipro staff are protected.

4.2.2 Changes to terms and conditions of employment are permitted where the sole or

principal reason for the variation is an economic, technical, or organisational

reasons entailing changes in the workforce. Any proposed variation of a contract

of employment transferred under TUPE is void if the sole or principal reason for the

variation is the transfer.

4.2.3 In the event of a relevant transfer, it is envisaged the Council’s Legal and People

and Organisational Services will prepare for and support all transfer requirements

through an agreed action plan and consultation and communication plan, including

statutory obligations to inform and consult with both the affected employees’

representatives and the affected employees themselves. Both services have been

consulted on the contents of this report.

4.2.4 A dedicated Business Solutions Structure Working Group meets four-weekly to

consult on proposals related to the implementation of an integrated council-wide

ICT service. This group includes Trade Union representatives from Unison, GMB

and Unite, as well as representatives from Business Solutions, People and

Organisational Development, Community Learning & Development and Education

& Families. Details of proposals in respect of presently outsourced ICT support

services were discussed within the group in April, August, and November 2021.

Similarly, details of the option appraisal were discussed at the Chief Executive JCC

meetings held in June and September 2021.

4.3 Technology / Digital impact

4.3.1 This paper and its associated analysis have been undertaken with appropriate

consultation with technology management, contract management and in

partnership with the current service delivery partner. In doing so the conclusions

derived have been reached with technology support and adoption as key drivers

for the Council.

4.3.2 The options have been analysed, costed, and assessed and incorporate increases

in volumetrics associated with the insourcing of Culture and Leisure NL and the

future realignment of the education technician support officers.

4.4 Environmental impact

4.4.1 There are no implications of this nature arising from this report

4.5 Communications impact

4.5.1 A robust corporate communication plan will be discussed and agreed with

colleagues due to the following points:

• Controversiality of report – Aspects of the contract has been outsourced for over

12 years, so a robust explanation through a communication plan regarding a

recommendation to now fully insource will be required.

• Public Promotion of report – As with all council reports this document may be

subject to Freedom of Information request. There does not appear to be any

reason why it would not be made available if a request was made but as the

service in question is predominantly supporting internal customers there is no

immediate reason to publicly promote this report.

• Change in service delivery – The immediate need to deliver service will be

assessed and based on critical services first. The aim will be to minimise

disruption outside of Business Solutions, but it cannot be ruled out.

Pragmatically there will be a period of disruption that may require a reduction in

SLA targets in some areas.

• Reduction or Cessation of service – Not applicable, there is no aim to reduce of

cease services as part of this intended change. The only element that will cease

will be the Wipro Managed Service contract.

• Changes for employees outside of your service – If approved, Option D will

result in additional employees transferring to NLC. The TUPE elements have

therefore been discussed with colleagues in Legal Services and People and

Organisational Development.

4.6 Risk impact

4.6.1 All relevant benefits, risks, and uncertainties likely to arise from NLC reviewing and

potentially revising existing delivery arrangements were examined in detail during

the option appraisal process.

4.6.2 In assessing each option, participants referenced a standard Risk Assessment Tool

to consider, capture and score risks in the context of Service Delivery, Finance,

HR, Legal and Reputational risk to determine how well the option could satisfy the

key strategic goal of “minimising future risk to the NLC.”

4.6.3 The detailed risk assessment available within supporting documents highlights

option 1 carries Minor risk for NLC, Option 2 Major risk, and Option 3 Moderate

risk. There are however some financial details which cannot be confirmed in

advance of a formal decision and receipt of detailed TUPE information. Estimates

are therefore presently included within the cost projections.

4.6.4 The TUPE transfer of staff will result in an imbalance of some staff grade/salaries

and benefits in kind, which could potentially impact employee morale, but the

Council has experience of managing and developing a two-tier workforce. There is

also uncertainty regarding the status of some third-party subcontracts. It is currently

assumed these would novate to NLC but there is an alternative view that the staff

involved in delivering these may also need to transfer to NLC giving rise to further

TUPE implications. Finally, depending on the outcome of the Council’s Future

Operating Model, accommodation may be required for any staff transferring under

TUPE, but this report recognises that such will need to be considered alongside

our asset rationalisation agenda.

5. Measures of success

5.1 Ongoing delivery of ICT support with minimal downtime or additional internal

resource requirement.

5.2 The ability to support the evolving ICT estate and digital transformation without

unnecessary additional cost and delays.

5.3 Reduced overhead costs for project work

6. Supporting documents 6.1 Appendix 1 SWOT Analysis 6.2 Appendix 2 Options Appraisals Outcome 6.3 Appendix 3 Options Risk Assessment

Katrina M Hassell Head of Business Solutions

6.1 Appendix 1 SWOT Analysis

Option A – Invoke the second two-year contract extension (As is including

offshoring + Adjusted for workload volumes and NLL Scope)

Strengths Weaknesses

• Easy to implement, least effort to agree.

• Existing systems continue as is i.e., no

procurement implementation for service

desk tooling.

• No need to immediately invoke the Exit

plan.

• Access to skills and expertise not

currently within NLC including access to

project resources.

• Inclusive ITIL assessment function

• Slower Service Introduction process

• Challenge of ensuring 3rd party has up

to date skills, when only tasked with a

support only function

• complexity of on/offshore roles/skills

• embedding of skills to offshore

• Misalignment of Wipro and NLC Teams

• SLA focus results in inflexibility due to

concerns regarding Service Credits.

• Current SLA’s lack relevance to current

requirement, adjustments may incur £.

• Limits ICT options in economies of scale

across all ICT resource pools.

• Balancing commercial focus of a 3rd

party with needs of public sector org

brings financial conflict

• Lack of control over all ICT resources

• Contract duration is limited to 2

additional years only.

• Service Delivery not aligned to Town

centre hub model in The Plan

Opportunities (including financial) Threats & Risks (including financial)

• Experience and market awareness of a

global organisation

• Access to 3rd party resources and skills

• Key skills offshored, reduces ability to

physically respond to complex tasks

• Significant change to support model

• SLA performance rather than dedicated

resource

• Overlap of task between Wipro (onshore

/ offshore) and NLC/ NLL/ Education staff

• Wipro have experienced resource drain

in recent year and have had recruitment

difficulties.

• No integrated development pathway for

employees working within Wipro on

support to move to design and strategy.

• Insourcing of aspects of similar contract

delivered by Wipro to THC, reduces local

business focus and resource capability

• International Data Transfer agreement

• Local knowledge may be lost to offshore

Option B – ONSHORE Service Desk, ITIL, ServiceNow, Unix support + NLL


• Reduced complexity of support model for

the next 2 years.

• Retain Unix support, NLC have no UNIX

skills

• Retain access to experience and

resources from global 3rd party supplier.

• Retain service desk functions as is.

• Delay of enacting the exit plan

• Improves resource optimisation.

• Partial acquisition of SLA focused

resources

• Avoidance of procuring and

implementing NLC service desk solution.

• Despite ongoing discussions on contract,

the 6 months’ notice has been invoked.

• Retained opportunities Access to skills

and expertise not currently within NLC

including access to project resources.


• Contract duration is limited to additional

2 years only.

• Although multiple touchpoints still

present a minimum risk, this would be

limited to fewer areas so less opportunity

for pieces of work or tasks to fall through

the cracks.

• Delay in accessing required skills, due to

definition required for Wipro before

training or sourcing can happen.

• If both organisations not in agreement, a

lengthy legal negotiation may be

required.


• Increased organisational flexibility, with

reduced contractual concerns. Leading

to potential improved financial control by

reducing overheads.

• Reduced cost of change (vital for digital

transformation)

• Potential future financial efficiencies

through consolidation

• Use of frameworks such as Crown

Commercial and G-Cloud to source area

specific partners.

• NLC right sourcing options may be

unattractive to Wipro if overall contract

size reduced, resulting in an unrealistic

offer.

• Reduction is contract value, reduces

contract profile to Wipro, potentially

resulting in reduce contract management

and opportunity.

• May cause uncertainty within Wipro

resource resulting in staff leaving.

• Unions & HR would both require to be

involved – unlikely to be a significant

issue as this option should be

considered as a positive initiative.

• Further demand change may reflect on

additional cost.

• Time – we need to decide in the very

near future. Short time window for

transitioning of staff and amendment of

processes.

• TUPE and/or increased variance in

contracts

Option C – OFFSHORE Service Desk, ITIL, ServiceNow, Unix support + NLL


• Reduced complexity of support model

for the next 2 years.

• Retain Unix support, NLC have no UNIX

skills and although demand is

decreasing these systems will be with us

for another 2-3 years.

• Retain access to experience and

resources from large 3rd party supplier.

• Possible avoidance of enacting the exit

plan, if organisations were both in

agreement a change note could cover.

• Improves resource optimisation.

• Partial removal of SLA focused

resources

• No additional procurement required for

services that have been introduced –

portal, chat, self-service password resets


• Avoidance of procuring and

implementing NLC service desk solution.

• Despite ongoing discussions on

contract, the 6 months’ notice has

already been invoked – no constraint.

• Contract duration is limited to additional

2 years only.

• Although multiple touchpoints still

present a minimum risk, this would be

limited to fewer areas so less opportunity

for pieces of work or tasks to fall through

the cracks.

• Delay in accessing required skills, due to

definition required for Wipro before

training or sourcing can happen.

• If both organisations not in agreement, a

lengthy legal negotiation may be

required.

• Development of new processes for

offshored elements of contract.

• Loss of locally available staff

• Offshoring transition will be more visible

to internal customers by the service

provided

• Local knowledge may be lost to offshore

• Transition to offshoring bring a risk in

itself


• Increased organisational flexibility, with

reduced contractual concerns. Leading

to potential improved financial control by

reducing overheads.


transformation)


through consolidation.

• Retained opportunities access to skills

and expertise not currently within NLC

including access to project resources.



specific partners.

• NLC right sourcing options may be

unattractive to Wipro if overall contract

reduced, resulting in an unrealistic offer.

• Reduction is contract value, reduces

contract profile to Wipro, potentially

resulting in reduce contract management

and opportunity.

• May cause uncertainty within Wipro

resource resulting in staff leaving.





• Further changes may incur + cost.

• Time – Short window for transitioning of

staff and amendment of processes.

• International Data Transfer agreement


contracts

Option D – Insource All


• Reduced complexity of support model

• Single ICT structure aiding ambitions of

The Plan, allowing complete control of

resource allocation,

• Greater pool of ICT staff already

familiar with NLC as TUPE would apply.

• No more borders (multiple touchpoints)

between teams, Improves resource

optimisation.

• Skills developed to requirements and

allocated as appropriate.

• Avoid future procurement exercise.

• Remove financial profit margin.

• Optimisation of NLC agility to best

utilise resources and meet challenging,

conflicting but ambitious deadlines.

• Acquisition of resources that are

familiar with SLA focus which then

enables end to end SLA control.

• Acquisition of SLA focused resources

• Need to transfer (possibly procure)

services that have been introduced –

portal, chat, self-service password resets

etc.

• Procure and implement NLC Service

desk solution.

• Loss of immediate access to experience

and resources from large 3rd party

supplier.

• Procure or build internal ITIL

assessment function

• OOH password reset function for Health

& Social Care would need to be

recreated.


• Better financial control e.g., reducing

overheads and minimising additional

project resource related costs.


transformation)


through consolidation

• To develop use of ServiceNow product

across the wider organisation,

leveraging investment.



specific partners.

• UNIX skills – NLC have no UNIX skills

and although demand is decreasing

these systems will be with us for another

2-3 years. This is an area we may seek

a 3rd party to provide.

• Window is extremely tight to insource

• Need to invoke the Exit Plan and ensure

sufficient resource available (limited

technical resource involvement)

• Invoking Exit Plan may cause

uncertainty within Wipro resource

resulting in staff leaving.





• Recruitment for post not filled via TUPE

could be challenging in current market

• Implementation of ServiceNow within

timescales will be challenging


contracts

• HR capability to deal with transition

6.2 Appendix - Optional Appraisal Outcome

Councils Strategic Goals Option B Option C Option D

Alignment with The Plan for NL 3 2 4

Minimise future risks for NLC 4 3 4

Cost effective and affordable delivery service 2 4 4

Maintain influence over service delivery and performance

4 4 5

History and experience of proven delivery service 4 3 2

Scoring against goals (highest preference) 17 16 19

The Plan for NLC - Priorities

• Improve economic opportunities and outcomes.

• Support all children and young people to realise their full potential.

• Improve the health and wellbeing of our communities.

• Enhance participation, capacity, and empowerment across our communities.

• Improve North Lanarkshire’s resource base.

Scoring Definitions

5 – Will achieve goals and provide further opportunities to achieve additional benefits

4 – Will achieve goal and may generate scope to offer some additional benefits

3– Generally likely to achieve goal but limited opportunity to realise additional benefits

2 – Some impact on achieving a goal but requires significant council support and/or funding

1 – Minimal impact on achieving goals

0 – Not legally permissible and/or does not achieve goal.

6.3 Appendix - Options Risk Assessment

Option B - Onshore

Key Considerations Risk Likelihood

Risk Impact

Commentary Rationale

Corporate/Service Objectives

3 2 Allows better strategic management of ICT by streamlining the provision of identified

insourced towers. Allows further aligned with future changes in education and the

community hub model. Some services would remain with delivery partner and others

would come in house or to other delivery partners, meaning a reduction in

impact overall to the organisation

Financial 5 4 The most expensive option on the table, will impact budget and ability to progress

future project work.

On people 3 1 No obvious harm or injury, however emotional distress may occur regarding those who are being subject to TUPE and the effects on morale with those still in Wipro cannot be ignored.

On time to recover 3 3 Like corporate and service objectives by keeping some services with our current delivery partner, bringing others in house and overall right sourcing will limit the impact to the rest of business in NLC

On reputation 3 2 Maintaining local jobs and service levels should be viewed in a favourable light, however at the price of higher costs to the public sector.

Total Risk Score 17 12 204/625 (Medium risk option on basis of risk category averages, with financial impact assessed as key concern)

3 2 6 Plotted on the risk matrix indicates this risk is a Yellow Minor

Option C - Offshore

Key Considerations Risk

Likelihood Risk

Impact Commentary Rationale

Corporate/Service

Objectives 3 3 Allows better strategic management of ICT by streamlining the provision of identified

insourced towers. Allows further aligned with future changes in education and the community hub model. Some services would remain with delivery partner and others would come in house or to other delivery partners, meaning a reduction in

impact overall to the organisation Offshore element introduces challenges around access to resource, ability to deliver onsite tasks, reputational damage, local economic impact etc

Financial 5 2 It is possible that costs may be challenging but opportunity to streamline resources and get best value for money.

On people 3 1 No obvious harm or injury, however emotional distress may occur regarding those who are being subject to TUPE and the effects on morale with those still in Wipro can’t be ignored. Immediate impact to those employed locally with roles moving

offshore.

On time to recover 4 4 Like corporate and service objectives by keeping some services with our current delivery partner, bringing others in house and overall right sourcing will limit the

impact to the rest of business in NLC

On reputation 5 3 Local jobs moving to another country will not be seen favourably at all.

Total Risk Score 20 13 260/625 (Most risky option on basis of risk category averages, with 3 of the 5

risk categories having moderate or higher risk impacts)

4 3 12 Plotted on the risk matrix indicates this risk is an Amber

Option D - Insource

Key Considerations Risk Likelihood

Risk Impact

Commentary Rationale

Corporate/Service Objectives

3 4 All services would be insourced with no further service delivery partner, significant impact overall to the organisation, potential for inability to function however we are well rehearsed in mitigating this type of risk.

Financial 2 1 Complete control of overall cost to produce best value and streamline in house provision. Negligible impact.

On people 3 2 No obvious harm or injury, however emotional distress may occur regarding those who are being subject to TUPE. Impact on staff regarding disparity of grades and functions.

On time to recover 5 4 This option would put a significant amount of pressure on technology when viewed alongside all the other staff changes that would need to happen and continuing

delivery of service across NLC.

On reputation 2 1 Frustrations with the external service delivery partner have been contentious over the years and therefore a move to in house delivery where NLC has more control of

the IT resource would be seen favourably. No loss of local jobs. Clear linkage into the Plan for North Lanarkshire.

Total Risk Score 15 12 180/625 (Least risky option on basis of risk category averages, but does acknowledge capacity pressures will arise during transition)

3 2 6 Plotted on the risk matrix indicates this risk is a Yellow Minor

ICT Service Delivery Recommendation - North Lanarkshire ...

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