UK government to continue to outsource services as its kicks off second half

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Often when suppliers are called into the Cabinet Office it means bad news.

According to this article, Paul Pindar who is CEO of back office service provider Capita, had a nice experience when he last visited.

According to Reuters, this is what he had to say after meeting with the Cabinet Office. "One of the clear themes that came through was that we're now in the second half of the football match and the activity needs to kick off again."

Could the second half see the introduction of the new Indian winger? You know the one. Young, fast and still on a low salary.

Pindar said that the MoJ, MoD and local authorities are showing signs of being the best opportunities.

I am curious about what the government will outsource next in terms of IT? The Universal Credit looks like it might be turning into a bit of a disaster and there is controversy at local authorities that are planning to outsource, such as Cornwall council.

 

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I wonder how long this "Indian Walmart" approach to taxpayer-funded IT can continue? The UK IT industry (like many others) is already suffering from the catastrophic impact of mass offshoring (via outsourcing) that has eliminated jobs and career opportunities at all levels and suppressed salaries to such an extent that experienced developers outside London can expect to earn no more today than they did 10 or 15 years ago. Those who survive in the industry are thus paying less tax, offshore staff pay no UK tax at all, and the thousands of onshored Indian staff pay little or no UK tax because their incomes are implicitly subsidised by the UK taxpayer via tax-free subsistence allowances etc. So for every taxpayer's pound spent on IT by the UK government, less and less is being spent in the UK or generating UK tax revenue. Money is being taken out of the UK economy every time we go around this loop, and with the rest of the economy stagnating around us, I don't see how this self-destructive haemorrhage of shrinking tax revenues can be sustained. Eventually, all the money will be going to India, and nobody in the UK will be able to pay any taxes to keep the show on the road, because they won't be earning anything. As an out of work IT professional, I guess I'm just ahead of the curve here...

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This page contains a single entry by Karl Flinders published on November 13, 2012 12:17 PM.

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