Arvato signs 10-year partnership agreement with Chesterfield Borough Council
The services include ICT, customer services, human resources, revenues, benefits, payroll, accounts payable, invoice processing, engineering and facilities maintenance and asset management.
To support the delivery of these services, 170 council employees have transferred to Arvato and 34 to Kier, all on their current terms.
Over the course of the contract, the partnership will make savings of over £4 million on the cost of services and will invest £1.7 million in technology and infrastructure.
This investment will include the refurbishment of facilities at Revenues Hall to create a modern customer service centre.
Cllr Ray Russell, Leader of Chesterfield Borough Council, said: “This is a major step forward for us which provides a good deal for council tax payers in the Borough. This new way of working will ensure that excellent quality customer service can be provided whilst making efficiencies and continuous investment in Council services.
“It’s quite significant for us to go live with this partnership in the same week that local government is expecting to see the funding they received from central government reduced next year.
“Our stance in Chesterfield is to innovatively look at new ways of improving service delivery by both finding efficiencies and protecting and securing jobs.
“This will be a genuine partnership with all three parties working closely together to ensure that our residents receive a seamless service that offers excellent value for money. As the partnership progresses there will be significant future improvements to make better use of technology and major investment in our Revenues Hall, making Council services more user friendly, accessible and modern.”
Rainer Majcen, managing director of Arvato government services, said: “The Arvato partnership will deliver exceptional public services with Chesterfield Borough Council, bringing wide ranging benefits to citizens of the borough.
“At the same time as transforming the quality of services, we will also make considerable cost reductions through increased efficiency, helping the Council to meet the large budget cuts that all local authorities are currently facing.
“We are investing in technology and infrastructure to allow us to meet these goals of increasing quality and efficiency to deliver real benefits to residents and local businesses.
“The agreement with the council forms part of the growth strategies of both Arvato and Kier, and we will strive to create jobs wherever possible.
“This is a very exciting step for us and a significant milestone in the growth of Arvato government services’ award winning work with public sector organisations in the UK.”
Mark Steed, operations director for Kier, said: “We are extremely pleased to be working in partnership with Arvato to deliver asset management, engineering and facilities management services to Chesterfield Borough Council. The partnership is an exciting opportunity for us to build on our existing business and expertise in the local area.
“The long-term nature of the partnership will allow us to invest in developing the service to generate real efficiency savings to the Council and improve the management of public buildings.”
The agreement is Arvato government services’ third flagship Public-Private Partnership (PPP) agreement in the UK.
In 2008, Arvato agreed a 10-year Public-Private Partnership (PPP) with Sefton Metropolitan Borough Council in Merseyside to deliver a wide range of Finance and Information services.
In 2005, the company secured an eight-year PPP agreement with East Riding of Yorkshire Council. This partnership has been extremely successful and has resulted in a series of highly regarded public sector awards, including ‘Best PPP’ at the Local Government Chronicle Awards and the ‘Public Private Partnership Award’ from the Association of Public Sector Excellence.
Arvato UK & Ireland is a leading provider of business process outsourcing (BPO) services, including CRM, loyalty management, supply chain management and finance services, operating in the public and private sector from eight locations.Customers include multinational corporations in a diverse range of industries, including well known brands in technology, entertainment, financial services, travel and automotive. It is a subsidiary of Arvato, one of the world’s largest internationally networked media and communications services providers with over 60,000 people employed in over 270 subsidiaries across 35 countries worldwide. Arvato is one of five divisions of Bertelsmann AG and has annual revenues of approximately €4.8bn. For more information, visit www.arvato.co.uk.
Kier is a leading construction, development and service group specialising in building and civil engineering, support services, public and private house building, property development and the Private Finance Initiative (PFI). The Group employs over 11,000 people worldwide and has an annual revenue in excess of £2.1bn. For more information visit: www.kier.co.uk.
About Chesterfield Borough Council
Chesterfield is one of nine district/city councils in the County of Derbyshire.
Chesterfield is Derbyshire’s largest town with a resident population of approximately 100,000. It is centrally located in England and benefits from excellent road and rail links to the rest of the country. The town lies on the eastern edge of the Peak District National Park, an area of outstanding beauty and interest.
The local economy is undergoing a period of structural change as new manufacturing industries and service based sectors replace the heavy industries that the area has traditionally relied on. This process is likely to continue, reflecting the changes taking place in the national economy.
The Council recognises these changes and is positively investing for the future.
For further information, please contact:
Arvato government services
Tel: +44 07748 984607