But according to the Local Government Association (LGA) their efforts are being undermined by "tortuous" EU procurement rules that are "choking off" opportunities to save money and stifling local growth.
In particular, the body is concerned about procurement directives that are due to be revised over the next 18 months. At present, contracts for goods and services worth more than £170,000 must be opened up to the entire European Union.
Read more: GB: EU procurement rules hindering shared services
Harley, who was government CIO between February 2011 and spring 2012, told Computing that the government should concentrate on matching its words with actions.
Read more: GB: Harley: Government focus needs to be on implementation of ICT strategy
The outsourcing deal is expected to take over the council's 'business package', which incorporates finance, procurement, revenues and benefits, ICT, customer services and human resources.
Read more: GB: North East England: North Tyneside Council outsources ICT to cut costs
Bristol’s digital and creative firms will have greater chance to bid for a share of the council’s £25million annual ICT spend in the future.
Bristol City Council said on Friday it is changing its strategy on the way it delivers ICT services, involving smaller packages of work being ordered for shorter periods of time.
Read more: GB: South West England: Bristol council to give more IT spend to city’s digital sector
Speaking to UKAtv, John Callan said Cheshire East and Cheshire West and Chester councils have been sharing back office services such as ICT, HR and finance for the last three years.
He said the savings so far have run into "many millions" and insisted the opportunities for saving money continue. Indeed, there are opportunities to share other services too.
Read more: GB: Cheshire Shared Services 'willing' to share its experience with other authorities