MD2204 London Legacy Development Corporation Shared Technology Service

Type of decision: 
Mayoral decision
Date signed: 
12 January 2018
Decision by: 
Sadiq Khan, Mayor of London

Executive summary

This report seeks the Mayor’s approval for the Greater London Authority (GLA) to enter into a Shared Service arrangement with the London Legacy Development Corporation (LLDC) under which the GLA will provide technology services to the LLDC. This will result in the creation of three new GLA staff the Technology Group. The new shared service is proposed to be in place in June 2018 and will be reviewed annually.



That the Mayor:

Approves the GLA’s entry into a shared service arrangement, under section 401A of the Greater London Authority Act 1999, with the LLDC for the provision of technology services on a cost recovery basis. The estimated cost for the first year is £600,000.

Delegates authority to the Executive Director of Resources to prepare, finalise and subsequently execute on behalf of the GLA documentation putting into place the arrangements under section 401A.


Part 1: Non-confidential facts and advice

Introduction and background

The Greater London Authority (GLA) and the London Legacy Development Corporation (LLDC) have been examining the feasibility of the GLA Technology Group (TG), taking on the management and provision of all LLDC IT services from June 2018.

The LLDC currently uses a private company to provide these services. This contract will expire in June 2018.  Following market testing by the LLDC it was assessed that savings would be made by the GLA Technology Group providing a full range of IT Services to the LLDC instead of them retendering their technology services contract. These services will include: support and maintenance of all equipment and systems used by the LLDC along with ancillary services such as business analysis, project management, asset management, capacity management and consultancy services.

A detailed assessment of the costs of providing the service to the LLDC has been produced. It includes the provision of three new posts required to assist in the delivery of the service. These posts will spend most of their time at the LLDC Offices in Stratford.

The GLA has a well-established technology service and can provide a shared-services to the LLDC, it already provides technology services for MOPAC and the OPDC

The LLDC will benefit from a range of services that the GLA is currently putting in place to support cloud based services – allowing the LLDC to accelerate their move towards enhanced flexible working for their staff. They will be able to access resilient cloud based services over a new, resilient wide area network that is being commissioned by the GLA.

It is anticipated that the expertise that the GLA will offer will enable more effective management of the LLDC’s systems and infrastructure as part of a larger team that brings with it economies of scale and greater breadth and depth of experience. This may result in further cost reductions over time.

The Posts to be created are: Senior Support Officer (Grade 7), Support Officer (Grade 6) and Business Partner (Grade 7). The total cost of this is approximately £135K per year and will be included within the annual charge that LLDC will make to the GLA to meet the cost of the service.

The cost of the IT Service to the LLDC will be £600K per year (this is the cost of delivering the service – there is no “mark-up”), as a result the shared service will deliver an annual saving in the region of £200K and will ensure that spending is kept within the GLA Group.

The GLA and LLDC have similar IT estates and similar IT strategies enhancing the opportunities for continued collaboration.

In accordance with normal practice, the GLA and the LLDC will enter into a Working Arrangement and Arrangement for Delegation document to cover the services to be provided.

The shared service arrangement would commence 14 June 2018, subject to the approval of this MD. It will be reviewed annually and can be terminated by either party.

The London Assembly (through its GLA Oversight Committee) was formally consulted on the above proposal on 23 November 2017.  The Committee fully endorsed the proposal.     

Objectives and expected outcomes

2.1       The primary objective is to create a shared technology service whereby the GLA will provide a service to the LLDC because the greater depth and pool of resource at the GLA is expected to result in cost savings and efficiencies in the long term.


Equality comments

3.1       The matters that the Mayor is asked to provide consent for do not raise any equality issues and are consistent with the Mayor’s duties under section 149 of the Equality Act 2010. 


Other considerations

This works supports the work of the GLA by delivering budget savings for the GLA Group and contributes towards the drive towards the greater sharing of services.

The LLDC have looked at the potential staffing liability implications of the GLA’s provision of the services and are satisfied that no existing employees of its current IT services supplier are affected. The GLA will continue to work with LLDC in this regard and is also seeking to confirm whether there is any indemnity from the current IT services provider to cover any risk of a claim unexpectedly arising.  

The creation of the shared service will require the creation of three new GLA posts to support the delivery of the new service. The positions to be created are follows:

Position Title


1 x Senior Support Officer


1 x Support Officer


1 x Business Partner





Financial comments

This report sets out a proposal to enter into a shared services arrangement between the Greater London Authority (GLA) and the London Legacy Development Corporation (LLDC), whereupon the GLA will provide information technology services to LLDC.  As a result of entering into a shared services arrangement with LLDC, there will be creation of three permanent posts in the GLA Technology Group.

The costs of these posts are £136,000 (including on-costs and corporate vacancy factor) per annum and will be contained from the annual charge of £600,000 received from LLDC.  A summary is provided below:

Position Title

Position FTE


Net Budget (£)

Senior Support Officer




Support Officer




Business Partner






Vacancy Factor


Staff Cost




Other support

(This includes:

Data hosting, network links, system support, printing services, telephony support, GIS services, mobile device management support, consultancy services)




Total Cost








Share this page