Over half of public sector organisations have signed up to or renewed their existing contracts under the Payroll Services framework agreement with OGCbuying.solutions. Logica now provides payroll services to half of Central Government employees. In the last five years, the original membership of 13 organisations has grown to nearly 80 members.
The new public sector organisations to sign up to a fully managed payroll service are the Civil Nuclear Police Authority, the National Lottery Commission and the Office of Rail Regulation. Communities and Local Government (CLG) has also signed a new contract for a fully managed payroll service for 3,455 employees and Government Offices for England has chosen Logica to run a fully managed payroll service for 2,800 employees.
In July 2007 Logica agreed an expansion to its exclusive Catalist framework agreement with OGCbuying.solutions to provide public sector shared services for payroll and related HR processes. Since then the framework agreement has expanded even further, enabling Logica to provide outsourcing services across a number of integrated HR and payroll software platforms including Oracle, SAP and Logica Interact.
The agreement allows public sector and publicly funded organisations to benefit from a best value, proven shared-service, which provides ongoing savings as more organisations participate. Benefits of the framework agreement include reduced costs of the payroll function by as much as 30% using a shared-service model, increased efficiency via automation of processes and the integration of HR and payroll functions through the creation of a single database of employee information and streamlined processes.
Matthew Jones, Financial Controller at OGCbuying.solutions commented: “Since we signed the exclusive agreement with Logica eight months ago, we have been delighted with the level of support and consistent delivery that Logica has executed to make this framework agreement the success it is today. It is a credit to Logica that there are now nearly 80 members of the framework agreement and we hope to boost this to over 100 in 2008. The new members have also helped to drive down the payslip price further, making it even more attractive to those yet to join the shared service.”
Patricia Taylor, Director of Logica’s HR and Payroll business in the UK, commented: “It is really encouraging to see that public sector organisations are taking advantage of this ground breaking and innovative framework agreement and moving to the concept of a virtual shared service centre. The more departments that take up the service the better the price per payslip for all customers, making it a real win-win situation for everyone in terms of cost reduction and efficiency. The high number of renewals and new customers is testament to the solid working relationship we have built with OGCbuying.solutions.
“Shared services will remain high on the agenda in 2008 and will continue to require expert business consideration, ensuring that purposes and targeted outcomes are fully evaluated, costs are realistically assessed, time to delivery established and intended impacts measured against actual results.”
