Public sector shared payroll services expands further

Framework agreements can help government departments save money

Four new public sector organisations have signed up to have shared payroll services provided by Logica.

Logica has a framework agreement with the government procurement arm the Office of Government Commerce (OGC) – meaning all contracts for payroll services will adhere to the same format.

The Civil Nuclear Police Authority, the National Lottery Commission, the Office of Rail Regulation and Government Offices for England have all now signed up to the payroll arrangement.

Uptake of the framework agreement has been encouraging, according to Matthew Jones, financial controller at purchasing agency OGCbuying.solutions.

"It is a credit to Logica that there are now nearly 80 members of the framework agreement and we hope to boost this to over 100 in 2008," he said.

"The new members have also helped to drive down the payslip price further, making it even more attractive to those yet to join the shared service.”

The payroll systems run on a shared services model, providing economies of scale and allowing smaller organisations to reduce costs by up to 30 per cent.

The Department of Communities and Local Government has also renewed its payroll services contract.