London Metro abandoning outsourcing contract
London Metropolitan University Abandons Plans for Outsourced Shared Services Center
After a series of investigations and changes in circumstances, London Metropolitan University has decided to scrap its plans for an outsourced shared services center. The university's decision, reported by The Guardian last week, comes amidst a significant shift in its student and financial landscape following the revocation of their Highly Trusted Sponsor status by the UK Borders Agency.
The shared services center, initially planned to offer services including IT, payroll, and library management, was intended to streamline operations and reduce costs. However, the university's recent findings of "serious and systematic" failings in their handling of non-EU students and their visas led to the revocation of their license to sponsor students from outside the European Union. As a result, over 55% of the university's current international students have opted to leave the university.
In light of these developments, the university has decided to stop the shared services procurement and replace it with an extensive business process re-engineering exercise. The re-engineering will aim to take cost out of the university's business while focusing on improving support service areas. The university aims to appoint a supplier for business process re-engineering services by the end of the year.
Initially, BT, Capita, and Wipro were shortlisted for the £74 million, five-year contract. However, BT has withdrawn from the running, and the search results do not provide information about the name of the company selected by London Metropolitan University as a service provider for business process re-engineering.
The re-engineering exercise will aim to achieve transformation quickly to better serve students and mitigate financial impact. The university won a court case on 21 September, but the exact details of the case were not specified in the article. The university's decision to scrap the shared services plan is due to changes in circumstances, and they no longer feel the original plan for the shared services center is suitable for their new circumstances.
The business process re-engineering will focus on the university's support service areas, with the ultimate goal of providing a more efficient and effective service to students and staff. The university's student and financial landscape has significantly changed since the revocation of their Highly Trusted Sponsor status, and this re-engineering effort is a significant step towards addressing these challenges and ensuring the university's long-term sustainability.
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