Accenture pioneers procurement services in London

The City of London Corporation has awarded a five-year contract to Accenture - the first significant contract for the company in the UK's local government sector - to create a new procurement Shared Services centre.

The new City of London Procurement Service will assume responsibility for procurement and procure-to-pay functions, and will be managed by a joint team from both Accenture and the City itself. The contract follows a value-based model, with a proportion of Accenture's fees tied to the savings it achieves during the term of the deal.

New technology will be deployed through the implementation of an eMarketplace and a buyer portal to assist departments in requisitioning and using the new service. It is claimed the unified procurement function will help the City fully exploit the latest procurement techniques, such as category and demand management, and more effectively balance quality, price and operational costs.

"The City is seeking to achieve savings and drive efficiencies through the way in which it conducts its procurement and procure-to-pay functions," said Chris Bilsland, the City of London Corporation's financial director. "We selected Accenture because of its proven success in delivering procurement services to organizations across the world, although, of course, this new contract will complement our commitment to local procurement. The City of London Corporation will continue to enjoy the legacy of both the financial and non-financial benefits after the contract period."

Mark Lyons, Accenture's United Kingdom and Ireland managing director for Health and Public Service said the aim was to save the City of London Corporation more than £30 million over five years. "This innovative, value-based arrangement will ensure that both Accenture and the City of London Corporation are committed to delivering these savings," Lyons said. "Accenture will bring its deep industry skills and insight across its global network to drive continuous improvement for the City."