Strategic Partnership with Peterborough City Co...

Serco selected for strategic partnership with Peterborough City Council to
reduce costs and improve services

26 October 2011

Serco Group plc (Serco), the international service company, today announces
that it has been confirmed preferred bidder for a new strategic partnership
with Peterborough City Council in the UK, to transform the quality of local
services for citizens and deliver £20m of savings to the local authority.

With an initial contract value of £100m over 10 years, the contract will also
include an agreement to add supplementary services as well as an option to
extend for two further five-year periods.

The new partnership contract is due to start at the end of November and is in
addition to the existing 11-year £44m ICT contract awarded to Serco in 2009.
Peterborough City Council's in-house shared services venture - known as Manor
Drive - will transfer to Serco along with delivery of front-line and back
office support services ranging from customer services, finance, revenues and
benefits collection and payment, and property services.


Cost savings are expected to be more than £20m over the life of the contract.
In addition, the Partnership will also support Peterborough's ambition to be
the UK's Environment Capital with activities looking to build on the progress
that has already been made in creating the conditions for growth and
sustainability in the region. Around 450 members of staff are expected to
transfer to Serco under TUPE regulations.


Working in close partnership, Serco and Peterborough City Council will also be
responsible for the authority's ongoing business transformation programme.
Internal systems and processes will be re-engineered to reduce duplication and
improve efficiency. More flexible, responsive and productive working processes
will be introduced, such as more streamlined customer experiences. Such
initiatives will deliver service improvements for Peterborough residents and
support transformation across the wider council and other public sector
agencies in the east of England.


Commenting on the announcement, Councillor Matthew Lee, Deputy Leader of
Peterborough City Council, said: "As a council we pride ourselves on our
forward thinking and open-mindedness to involving the private sector where it
can deliver genuine benefits for our residents.


"Our existing shared services approach successfully delivered service
improvements and efficiency savings. With Serco's experience and expertise, we
have a partner that can help us take this approach to the next level and drive
our transformation programme for the next ten years. We look forward to
supporting Serco to create a market-leading regional hub that supports our
local economy and regeneration plans."


Christopher Hyman, Chief Executive of Serco Group plc said "We're delighted to
have been selected as preferred bidder by Peterborough. The results from our
strategic partnerships with Glasgow City Council and Hertfordshire County
Council demonstrate clearly the benefits of this ground-breaking approach to
service delivery and transformation. We are absolutely committed to a
partnership approach that will directly support the council's goals for
improved and more efficient service provision. Working together, Serco and
Peterborough City Council are poised to deliver services which also reflect
broader targets for economic regeneration and the development of sustainable
and skilled jobs within and around the city."

Ends

For further information please contact Serco:

Stuart Ford, Head of Investor Relations T [phone]

Dominic Cheetham, Director of Corporate Communications T [phone]

Marcus De Ville, Head of Media Relations T [phone]

About Serco

Serco is a FTSE 100 international service company, which combines commercial
know-how with a deep public service ethos.

Around the world, we improve essential services by managing people, processes,
technology and assets more effectively. We advise policy makers, design
innovative solutions, integrate systems and - most of all - deliver to the
public.

Serco supports governments, agencies and companies who seek a trusted partner
with a solid track record of providing assured service excellence. Our people
offer operational, management and consulting expertise in the aviation, BPO,
defence, education, environmental services, facilities management, health, home
affairs, information and communications technology, knowledge services, local
government, science and nuclear, transport, welfare to work and the commercial
sectors.

More information can be found at www.serco.com

About Serco in Local Government

Serco's local government division covers specialisms that range from children's
services to business process outsourcing, property management to procurement,
economic development to facilities management, information communications
technology to environmental services, supporting local authorities to deliver
services to millions of UK citizens daily. In the last four years Serco has
signed strategic partnerships with Glasgow City Council and Hertfordshire
County Council as well as several significant shared service contracts with a
number of local authorities including Enfield Council and Derby City Council.

More information can be found at http://www.serco.com/markets/localgov/