The more the election campaigns of the political parties drag on, the more I feel the next government will have a small majority or you never know there could be a hung parliament.
No matter what mess Labour get themselves in the Tories can’t seem to take full advantage.
I wonder where a hung parliament would leave the banks. And more specifically their cost cutting measures such as offshoring IT.
I had an interesting conversation with an IT professional this week. He used to work at RBS so I asked him whether he thought the bank’s current financial woes would lead to more offshoring. RBS which is over 80% owned by taxpayers lost £3.6bn in the last year.
He told me that the bank is gradually sending more jobs overseas to RBS India.
But surely RBS is not alone in moving IT offshore. Most banks face severe pressure to cut costs.
Perhaps the only finger in the dam stopping a flood of offshoring is the government’s predicament. An election is close and the government is unpopular enough without sending UK jobs overseas.
One lawyer I spoke to says he is not seeing any major offshoring deals being signed by banks at the moment. The government has more influence over the banks now than ever before and no bank CEO would risk offshoring on mass.
But if the Tories win the a workable majority at the election, which I thought was a dead cert until recently with a hung parliament looking a possibility, will the finger in the dam be removed?
The Tories have said that the management of banks is a matter for bank management teams and not Ministers. Also Labour will always be blamed for the banking crisis so more offshoring might not hurt the new government as much as it would the incumbent.
But a hung parliament will give a voice to more people which inevitable means decisions are harder to reach. Consensus politics is democratic but can lead to political stagnation. Look at Italy.