FIRMS bidding for Scotland's biggest Government IT contract have spoken about its potential to transform the way services are delivered.

Vodafone and Virgin Media, who have joined forces to bid for the £100 million-plus Scottish Wide Area Network (Swan) spoke out after a damning Holyrood report into the pace of public sector reform.

The consortium, one of three in the running, said it would allow public bodies to work together to deliver services more efficiently.

In their report, Holyrood's local government committee found reforms recommended by the 2011 Christie Commission, such as greater joint working, failed to materialise as public sector bosses were "resistant to change".

Virgin Media Business managing director Tony Grace said: "Swan has the potential to deliver closer collaboration via shared infrastructure such as superfast broadband between the police and fire service, housing, education, welfare, health, social care, prisons, and other public service partners."

Vodafone-Virgin Media, BT and Capita are bidding to deliver Swan, which will link the NHS, social services, police and other public bodies in a single high-speed IT network. The cost of the project has been put at £100m to £325m over three years. A pilot scheme, led by the NHS, is due to go live next April.

The president of Cosla, the body that represents local authorities, hit back at the report. Councillor David O'Neill said: "I am disappointed with the level of spin put on the report. It makes me wonder whether there is any point in giving evidence to this committee.

"We are changing and anyone who fails to see that either does not want to or is very out of touch."