p.7 news 12:Page 6 8/12/09 12:45 Page 7
News
£75 million ‘creamed’
Michelle Gayle
from schools
boosts national
charity’s teen
•
COMPLAINT TO THE OFFICE OF FAIR TRADING IN RELATION
reading drive
TO CAPITA CHILDREN’S SERVICES
•
CALL FOR MILLIONS OF POUNDS TO BE REFUNDED TO
SCHOOLS
S
chool software provider, Bromcom, has made a Bromcom has put these points to Capita, which has
complaint to the Office of Fair Trading (OFT) in given an inadequate explanation for its behaviour.
relation to what Bromcom considers to be anti- Bromcom also believes that the system under
competitive practices by Capita Children’s Services which software is procured for schools, either
(‘Capita’). directly by schools or through local authorities, is
Over the past twelve years, Bromcom believes not working effectively.
that Capita’s charges for contracts and dominance The overall position is that for certain software
in the UK schools software market has led to applications in schools, Capita has a market share
schools over paying by £75.4 million over a ten year well in excess of 80%. Capita itself claims that its
period*. products are in 2700 out of 3300 schools in the
The complaint to OFT follows recommendations country. Schools do not have a real and wide
made in 2005 by Becta’s School Management choice of software, schools do not benefit from the
Information Systems and Value for Money report, a innovation which results from effective competition
number of which remain outstanding. between different providers of software and schools
The key issues that arose in the report and which are probably overpaying for what they do get.
are still causing concern are:
Corrective measures will have a major positive
•
For many schools software costs have escalated impact for schools and for the market
significantly, with charges from the dominant Bromcom is calling on the OFT to investigate
supplier now between 2.5 and 3 times their whether Capita is in breach of its dominant position
1999 levels; and, if it so finds, is also calling for an urgent
decision to ensure Capita brings these practices to
•
There are very significant barriers to the effective an end. If Capita is found to be abusing its position,
choice by schools/LEAs; and then Capita should be required to reduce its
maintenance charges and offer contracts which
•
There is a lack of any significant contractual properly strip out the various elements which it
S
inger and actress Michelle Gayle has joined
national charity The Reading Agency’s drive to
commitment between the dominant supplier and offers and charge for them at stand alone prices.
bring reading into the 21st century, and inspire more
schools/LEAs as to the timeliness and quality of Capita should also offer real and effective
teenagers to read and get involved in creative
software provided. interoperability so the software of different suppliers
activities.
to schools work well together. One solution would During November Michelle ran a series of
Bromcom believes that its concerns in relation to be for Capita to embrace the open standards of the
pioneering workshops in specialist library spaces –
the operation of the marketplace for MIS products Systems Interoperability Framework and to have a
known as ‘HeadSpaces’ – designed by local
and services are shared by Becta, and by other technically knowledgeable umpire/arbitrator with
teenagers.
companies supplying software to schools. power to deal swiftly with interoperability issues
By discussing their writing and contributing their
promptly as soon as they arise. own ideas using BlackBerry handsets, the
Bromcom’s key complaints In Bromcom’s view, Capita’s maintenance
workshops also meet teens on their own terms -
Bromcom has made a range of complaints to the charges to schools may be overstated by about 25%
something the charity believes to be essential if they
OFT in relation to Capita. Bromcom alleges that or, for a typical secondary school, an overcharge of
are to develop a lifelong passion for reading.
Capita is, and has been, in clear breach of its £2,000 per year. Bromcom believes that Capita
The Reading Agency is campaigning to transform
obligations under the Competition Act 1998, at should offer restitution to schools who have
the way libraries engage with young people and
least since 2003. In particular by abusing its overpaid historically through annual maintenance
broaden the definition of reading. It has been
dominant position in markets for the provision of charges so that they can choose to have alternative
revolutionising the reading experiences of teenagers
software and software services for use in schools. products. Bromcom believes that Capita so
through the social media reading network,
The abuses by Capita alleged by Bromcom include,: structured its annual maintenance charges to cover
Groupthing, and youth-led spaces like HeadSpace.
Capita’s costs of developing new software for use in Michelle teamed up with the Reading Agency to
•
Charging annual software maintenance charges schools. Schools, therefore, paid “up front” for new
run ‘Pride and Premiership’ through libraries after
to schools which are inflated in order to cover software. They then are unable to use that money
pilot work in schools showed that many girls in
Capita’s costs of developing new software to buy better or cheaper software elsewhere and are
secondary education have low personal career goals
modules, which are then purportedly offered to effectively “locked in” to Capita.
and aspire to be footballer’s wives (WAGs). The
schools ‘free of charge’;
workshops are based around a novel Michelle has
Millions of pounds should be refunded to written on this subject.
•
Tying and bundling together software products schools
Michelle Gayle, said: “Hopefully these workshops
which can and should be sold separately; Should the complaint be upheld, Bromcom believes
will help young women to realise that they can use
the overcharges should be returned to schools. their intellect and natural talent to achieve what
•
Pricing strategies which tend to exclude The practical effect of the measures which
they want and inspire them to develop a lifelong
competitors from Capita’s entrenched position; Bromcom calls on the OFT to take will be
love for reading and creative writing - something I
substantial. They would mean that schools would am extremely passionate about.”
•
An inadequate supply of interface facilities and be able to have the real freedom to choose
interoperability; between alternative software to suit their needs.
trianglertwww.readingagency.org.uk
December 2009
Visit NEC at the BETT Show
Stand E90
7
Grand Hall Olympia, 13-16 January 2010
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