Department for Work and Pensions: Capita
The question
To ask the Secretary of State for Work and Pensions, whether his department has made an assessment of the potential merits of delivering the Synergy payroll service in-house.
Answered by Andrew Western
Bringing Business Process Services in-house was considered as part of the 2020/21 delivery options assessment for Synergy, which concluded that maintaining an outsourced model offered the best value for money.
Cabinet Office and Treasury controls on civil service headcount were a key consideration, as full insourcing would have required over 1,600 additional FTEs.
The assessment also reflected the existing outsourced shared services model, the availability of a mature supplier market, and the Strategy’s requirement to separate technology delivery from transaction service delivery.
Synergy is, however, establishing an in-house Shared Services Hub to manage end-to-end service delivery, partner contracts, and continuous improvement.
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