What will Bob Diamond's demise mean for Barclays outsourcing?

When a CEO leaves a company it often means a change of strategy. Certainly it puts things on hold.

I was chatting to a contact of mine last week who told me that Barclays has a lot of outsourcing contracts in the pipeline.

This is part of a strategy at the bank to reduce costs by £1bn over a period of years.
So what will happen to all these deals? Will it all be put on hold or scrapped completely?

“It is inevitable that with a new CEO coming in it will put the strategy on hold.”

Robert Morgan, director at sourcing consultancy Burnt-Oak Partners says in theory the strategy should not be affected. “It has all been set and agreed at board level.”

However he adds that a new CEO might want to leave his or her mark, which could slow things down if changes are made.

“Also if it takes a long to find a new CEO the strategy might drift.”

Robert says there will be people at Barclays that do not agree with the outsourcing strategy and they will be eager to be heard by a new CEO,

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"It is inevitable that with a new CEO coming in it will put the strategy on hold."

I dare say the RBS chaos will probably have helped to focus a few minds on how short-term savings through outsourcing can lead to longer term problems. Although UK bankers are not exactly famous for their long-term thinking...

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