a) There are advantages in transferring not only the risk of business process re-engineering involving IT solutions to a private sector partner but also the staff who will be responsible for implementing those solutions.
SBS is responsible for new IT systems and their use by staff who have transferred under the deal. SBS therefore has more control over this project than on previous projects, including the cultural change required from its new workforce (paragraphs 1.23 to 1.26).
b) In transferring staff to the private sector in circumstances where they may otherwise be made redundant, departments should encourage bidders to make proposals for alternative work for their new employees.
SBS saw the acquisition of the operational service as a strategic asset which provided an opportunity to develop services for other customers. Its bid was therefore priced to reflect the creation of at least 1,200 jobs on such third party work (paragraph 2.2(a)).
c) It is unwise to rely solely on risk transfer and appropriate incentives for the private sector party to ensure that the required services will be delivered.
As the transformation of operational processes is central to achieving the benefits expected by each partner and the ultimate success of the partnership, National Savings is monitoring progress by SBS and has engaged independent IT consultants to help it act as an intelligent customer (paragraphs 2.9 and 1.28).
d) Departments should ensure that poor performance by a service provider will put the contract at risk of termination.
National Savings has avoided being "locked-in" to the contract and can terminate the partnership if performance standards agreed with SBS are not achieved (paragraphs 2.11 to 2.13).