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Sitra’s project with municipal operators to harmonise IT, financial and HR administration services.
The information management, financial administration and HR sectors employ approximately 12,500 people in Finnish municipalities. The survey suggested savings of up to EUR 3 billion over the coming years by streamlining and combining IT systems.
Business plans were drawn up with municipal operators to create a vision for the centres’ ownership, networked operations, steering systems and long-term strategic objectives.
Municipalities were urged to give their thoughts on the negotiations held to establish the service centres. Sitra supported them through the founding process and ensured presentations were tailor-made to their individual needs.
In May 2010 nearly 20 municipal operators signed letters of intent to establish IT, Financial and HR administration service centres.
In September 2010 two companies - Kuntien Tiera Oy and Kunnan Taitoa Oy - were formed to provide joint IT, Financial and HR services for municipalities. Sitra’s Municipal Service Centre project was completed within the planned two year time frame.
At the beginning of 2009, Sitra launched the Municipal Service Centre project. Calculations had been made based on a preliminary survey within the municipalities, and it was evident that savings of up to several billion euros could be achieved if processes were streamlined and fragmented information management systems integrated. Optimisation of municipalities' applications and processes would free resources from administration to allow further investments in health care and other core functions.
The two-year project brought together a large number of municipalities and municipal federations – representing nearly 56% of the population of Finland – as well as interest groups such as the Association of Finnish Local and Regional Authorities and the Ministry of Finance. The project included surveys on the municipalities' interest in collaborating through service centre companies, preparation of business plans for two service centre companies and creating a shared vision of the ownership, networked operational methods, steering system and long-term strategic objectives of the centres.
On 15 September 2010, municipal operators established two service centre companies to produce unified, jointly developed IT and financial administration services for the municipal sector. KPK ICT Oy included 24 founding members and KPK THH Oy 11. During the project, more than 100 municipal operators submitted a letter of intent that expressed their interest in being involved in the ownership of the service centres. The ownership base of both companies has expanded significantly.
Actively influences, develops and coordinates municipal financial and HR management together with other operators.
Both companies are to be developed into major operators in their fields, aiming at creating new ways of producing municipal services. Significant financial benefits and better service levels are expected. The companies are fully owned by municipal operators.
The Municipal Service Centre project coordinated by Sitra ended in October 2010. For further information on municipal service centres, please contact:
Kuntien Tiera Oy (formerly known as KPK ICT Oy), CEO Ari Ikonen, company exchange +358 9 6189 9567, tiera.fi
Kunnan Taitoa Oy (formerly known as KPK THH Oy), CEO Anne Lindqvist, company exchange +358 20 610 9200, taitoa.fi