The road ahead

Paul Millard, Operations Director at Capita Software Services, takes a look at the challenges currently facing local authorities and the opportunities for change.

‘Doing more with less’ has become a guiding principle during these recessionary times in homes and businesses up and down the country. For those in the public sector, doing more with less has been a familiar phrase for a lot longer, with efficiency savings being high on the agenda since Gershon’s review in 2004.

Well before the economic downturn had taken hold, local government was already facing a tough landscape. In 2007, as part of the Comprehensive Spending Review, it was recognised that the context in which public services operated was changing rapidly and becoming increasingly challenging and complex.

Added to this, there are rising expectations from the public that when they contact their council they want their problems resolved first time. The recession has further complicated this situation by increasing the demand for benefits as many individuals find themselves with less money, out of work or homeless.

Therefore, it is somewhat unsurprising that recent research conducted by public sector market intelligence company, Kable, suggested that the three key issues keeping local government ICT directors awake at night were service delivery, efficiency and budget pressures.

This creates a dilemma as the need to improve service delivery seems to run at direct odds with local government’s other priorities of making cost and efficiency savings. Nevertheless, there are some innovative authorities managing to do both at the same time – killing two very large birds with one stone.

Shared services, or collaborative working, are one way forward. The main benefits of collaborative working are related to economies of scale. However, significant improvements to services can also be made. This is particularly true if the work to be shared involves a small number of people.

A relevant example is in the collection of business rates. Generally, only a few people are involved in this task. If a council combines this workforce with other teams locally or explores if their service can be provided by another organisation, they can invest in better systems to support their processes, or provide a more efficient centralised service whilst at the same time reducing overheads.

Switching to different ways of interacting with customers through mobile or self-service technologies is another option that is increasing in popularity. In a study conducted by Capita Software Services, respondents recognised that their requirements for these tools would certainly increase in coming years and 76% of respondents to a Kable survey, expected more widespread use of mobile working in their authority.

Mobile working gives councils the option of reducing their office space and overheads whilst ensuring front-line teams spend more time where they are needed. The approach seems to be working at East Lindsey District Council, which has given property inspectors access to mobile working facilities. “It enables them to work from home and visit more properties – they no longer need to visit the office daily to collect information as this is downloaded,” says Paul Wilson, the head of customer services in the revenues and benefits team.

With the recession increasing demand for benefits, offering claimants instant online self-service options also takes the pressure off staff. Customers can check information or apply for benefits without tying up call centre or office teams. Often the return on investment comes quickly, with councils reporting savings as high as 15%.

Nigel Robinson, the revenue service manager at the Borough Council of Wellingborough, feels self-service is an option to consider seriously. “With our growing number of customers it is essential that we look for innovative solutions such as this to reduce costs. We had 17,000 unique visitors to our site in one month. A lot of these enquiries would have previously been dealt with via the telephone or front office staff and would have cost far more to deal with.”

Local authorities are also looking to more symbiotic relations with their private sector IT providers as a way of making sure they combine better service with efficiency gains. Some of the most innovative supplier contracts we have worked on share the risk of any new project between the provider and the council; introducing incentives or releasing payments to suppliers only when agreed targets or efficiency savings are met, ensuring councils get more for their money.

The challenge for authorities is to take the first step into these new ways of working but the incentives are there and the rewards are worth it. It is clear that current challenges will continue to mean taxing times for councils but with a little innovation the outcome can be more efficient services and a better deal for the citizen.

For further information on Capita Software Services' solutions, please contact your Account Manager or visit www.capita-software.co.uk

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