4 The partnership with SBS arose from a strategy review which concluded that, although National Savings created significant added value for the taxpayer, it would be seriously eroded unless operational delivery was modernised to compete with private sector participants in the retail savings market. To meet the challenge, savings products needed to be designed and marketed more effectively, running costs had to be cut and customer service enhanced. This led to two key decisions.
5 First, a core of some 130 staff would be responsible for the design, management and marketing of products and for liaison with the Treasury on annual funding requirements. The remaining 4,100 staff would provide the operational service required to process transactions and deal with customers. Second, the private sector could provide the substantial investment needed to transform operational processes, design and implement supporting IT systems and create new jobs through the development of third party business.