Somerset County Council has revealed that it will miss its savings target of £172m through its 10-year outsourcing deal with SouthWest One.
The authority said as it slimmed down and sent less work to SouthWest One, it would have to revise the overall savings target.
Since the deal started in 2007, the council has saved £4m and has a further £18m in savings due to be banked.
SouthWest One handles accounts, call handling, payroll and Human Resources.
The Audit Commission said in a report that following cuts in government funding, the original targets needed to be revisited.
A spokesman from the Conservative-controlled authority said the figure had come down but was unable to give a specific figure.
The council faces a 25% cut in government funding over four years.
SouthWest One was created by Somerset County Council, Taunton Deane Borough Council and Avon and Somerset Police Authority with IBM.
- 4 December 2010
- 28 September 2010
- 22 February 2010