Southwark Council hopes to save £3m by installing thin client technology as part of a five-year, £26m outsourcing deal.

The London council has renewed a contract with supplier Serco to modernise desktops, servers and software applications across the organisation.

Thin client terminals have already been installed in Southwark’s housing department, which will serve as a model for implementation across the rest of the organisation later this year.

‘The deal represents an opportunity to move to a modern and supported desktop estate,’ said Phillip Lloyd, Southwark’s business services group manager.

‘It will reduce support costs and allow for more flexibility.’

Southwark Council has a number of premises, and thin client technology lets staff log in from any terminal, allowing a more mobile workforce.

Other benefits include lower hardware costs, reduced administration and improved security because the desktop computers are managed at server level.

Southwark Council expects to save as much as £3m over five years and make annual energy savings of up to £230,000. It will allow the council to meet targets set by the government’s public sector Efficiency Review.

Serco has worked with Southwark Council for more than six years, providing a range of IT and project management services. The council has also upgraded its customer service centre and wide area network.

Under the terms of the new contract it will transfer its IT assets to Serco.

‘This will provide for a regular refresh of our estate throughout the contract’s life,’ said Lloyd.

The council is using IT infrastructure changes to support organisational level goals, says Butler Group analyst Alan Rodger.

‘It is good to see a council using IT to benefit the business. It is quite a sizeable deal but so are the benefits,’ he said.