The local government funding crisis could lead to a shared services and collaboration bonanza for the channel, according to Cisco Gold partner Intrinsic Technology.
Earlier this week, the government announced that it is slashing the "formula grant" given to local councils by an average of 9.9 per cent in 2011/12.
According to unified comms specialist Intrinsic, the announcement could put further pressure on local authorities to make savings by turning to shared services or collaboration technology.
Paul Hunter, head of public sector contracts at Intrinsic, said: “Agile, service-led channel partners, who are able to quickly adapt their product portfolios and services to the changing demands of the public sector, can help councils make notable long-term savings.
“However, the largest channel partners may struggle to continue to effectively service the sector.”
Baroness Margaret Eaton, chairman of the Local Government Association, said the funding cuts would leave councils facing a total funding shortfall of £6.5bn over the next year.
According to research published this month by thinktank Localis, three-quarters of finance heads at local councils are exploring options to merge services with other local authorities or outsource service delivery to external organisations.
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