With the spending review due today more light will be shed on the level of savings government departments will need to make.
Offshoring IT can knock 30% of the labour costs in one swing so the government is clearly keen to run the rule over it. It looks like it will be prepared to see in-house IT jobs go.
So I am asking Indian companies what they plan.
So far I have had these responses:
Cognizant: “[The UK government] never been a target vertical – always focused on the private sector.
1 – Infosys: “Not for now.” Because a lot of room to grow in the private sector. It has 110 clients in Europe out of a potential basket of 500.
2 – HCL Technologies: “Will absolutely target government business and is one vertical it is investing in. It already has business through its Axon acquisition.”
3 – TCS – We know is keen on government business after it bid for and won the contract for the Personal Accounts Delivery Authority (PADA), which was created by the government to administer pension schemes.
I will continue to ask the question so watch this space.