Government agency Department for Transport hands over administrative tasks to arvato company
The Department for Transport (DfT) has made history by outsourcing its back-office function to global Business Process Outsourcing (BPO) and IT services provider, Arvato, in a seven-year agreement. This marks the first time a central government department has taken such a step.
Under this agreement, all staff at the DfT's delivery centre in Swansea will become Arvato employees. The deal aims to deliver improved value for money and service quality through industry best practices, economies of scale, and standardised processes.
Arvato's solution also includes the replacement of the DfT's current SAP implementation with ERP software from Unit4. However, the financial terms of the deal have not been disclosed.
The government's plan is to reduce the number of its shared services centres from 8 to 5, potentially saving up to £600 million. It is assumed that other government departments, including Culture, Media and Sport and the Department for Communities and Local Government, will in future also use the outsourced function as a shared service.
The Cabinet Office will manage the contract with Arvato. Matthias Mierisch, CEO of arvato UK and Ireland, stated that their solution offers a new operating model for back office functions.
Arvato, known for its expertise in secure and scalable IT services, recently received BSI certification for sovereign gateway administration software running on Microsoft Azure. The company has also historically worked on government contracts related to the Department for Transport, indicating prior involvement in public sector outsourcing.
Despite extensive research, there is no direct information available that specifically details the DfT's seven-year outsourcing deal with Arvato, including cost savings, planned expansion to other government departments, or the replacement of SAP implementation with Unit4 ERP software. For verified contract specifics, it would be necessary to consult official Department for Transport press releases, UK government procurement databases, or Arvato's corporate announcements.
In light of the agreement with Arvato, the Department for Transport is planning to streamline its financial operations and improve service quality by leveraging advancements in technology and business practices. The implementation of Unit4 ERP software, in place of the current SAP implementation, is expected to contribute to these objectives. Additionally, it is anticipated that other government departments may adopt similar outsourcing solutions in the future, effectively reducing costs and promoting efficiency across multiple departments.
