Sheffield City Council has shortlisted Capita and Fujitsu for a £200 million, seven year IT contract, after IBM fell out of the race.

The wide-ranging contract will replace services currently delivered by Liberata, and covers revenue and benefits processing, IT and communications, financial business processing and payroll. The council considered suppliers with experience in local government human resources, business transformation, property management and facilities management.

The shortlisting began a year ago, and Sheffield expects to award the contract by the end of the year. There will be an option for the council to extend the contract by six years if the service providers hit agreed targets.

Suppliers have yet to be shortlisted on the property and facilities management parts of the contract.

Laraine Manley, director of corporate resources at Sheffield City Council, said the council would now have more advanced discussions with the shortlisted suppliers. “Our aims are to reduce costs further through more efficient service delivery, while improving standards of service both to the citizens of Sheffield and within the Council for internal services,” she said.

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