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Government forms first independent shared service centre

Monday 4th March, 2013

Arvato UK & Ireland, a business process outsourcing (BPO) partner, has secured a contract to operate the first Independent Shared Service Centre (ISSC1) on behalf of the UK Government.

Under the agreement, the existing Department for Transport (DfT) Shared Service Centre in Swansea, South Wales, has been acquired by Arvato, which will provide back office services to the DfT and its executive agencies.

The seven-year outsourcing contract, which includes an optional three-year extension, aims to deliver significant savings to the Department over its duration.

The agreement also includes a framework contract under which Arvato will be able to maximise the centre’s considerable potential for growth by competing for additional outsourced central government business.

The Swansea site will be the first Independent Shared Service Centre to be operated by the private sector. It forms a key element of the Cabinet Office’s Strategic Plan for Next Generation Shared Services which aims to achieve savings of £400m to £600m per annum from back office costs by creating a market for shared services within central government.


Matthias Mierisch, CEO & Chairman of Arvato UK & Ireland, said: “Our solution provides a new operating model for back office functions, using industry best practice, economies of scale and standardised processes to deliver improved value for money and service quality.