quite

In defence of Capita and the like, there's not much they can do Gov Dept says "I want this Service to continue as is. My budget for 2018 is 2017's budget -4%. I want guaranteed savings of 4% per annum until 2022. By the way, this now a 4th generation outsourcing so all of the highly paid staff have already gone and the easy cost savings have all been achieved"

Savings can only come from further headcount loss or diminishing service.

Root causes are:

(i) diminishing budgets
(ii) most economically advantageous tender criteria that are fig leaves for cheapest-bidder-wins.
(iii) lack of expertise within client procurement functions to properly analyse financial models and work out where the money is being made
(iv) lack of expertise within clients to properly hold the suppliers to account (as the relevant staff have all been outsourced/poached).

All that said, I have zero sympathy for these outsourcing outfits (having worked for one on these sorts of tenders).

Posted By: CWC, Jan 31, 14:42:18