Government is going through a process of outsourcing anything it can as it's allegedly cheaper. However, these things tend to turn full circle, in a few years they will decide it's been a bad move and bring it all 'in house' again.
Look West Mr Blair, see what's happening in the USA.
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An outsourced service is 30% more expensive than doing it properly yourself. The issue is whether or not you are willing and/or able to put the skill, time and effort into doing something properly. Frequently people are not and outsource it as being an easier option.
Since the outsourcer now hs to do it for less money [your savings] and still make a profit, he needs to cut stuff out. In a typical IT group, for example, approximately 40% of their work will not be documented, understood or perceived as a valuable and/or independent service.
Post outsourcing you will be hurt by that 40% no longer being done and will now decide between not having it done (perceived by others as a degradation of service) or paying extra for it to be done (perceived by others as an increase in costs).
Outsourcing is a skill. Many people believe they have the requisite skills, a very few actually do.
However, it does achieve some things - it is easier to do, it is easier to hide the problems or at least blame someone else, and it beats trying and failing to resolve the issues in house, and it looks like you're doing something.
It is, nonetheless, a poor substitute for understanding and controlling your costs.
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A multinational technology client couldn?t resist the rates offered by one agency for translating work into German. The problem was that the translations were being completed in India by 'translators' who were not German.
The regional office only saw the printed brochures at the product launch and pointed out to the head-office that they not only lacked proper German characters, but that most of the content made little or no sense at all. Everything had to be retranslated, reset and reprinted.
So, what was the price of this botched translation? Just short of £50,000 for an initial saving of around £200 by going to India.
Hopefully, buyers will soon learn from their mistakes and come back to proper professional companies
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An outsourced service is 30% more expensive than doing it properly yourself.
It relieves your company of the liability of redundancy payments etc when times are hard and business is slack.
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L\'escargot.
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Please don't Mr. Blair, you'll probably decide that to keep the cost of wine stable, invading France would be a good idea.
On second thoughts - look west and spare a few hectares of Burgundy would you?
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Government is going through a process of outsourcing anything it can as it's allegedly cheaper. However, these things tend to turn full circle, in a few years they will decide it's been a bad move and bring it all 'in house' again. Look West Mr Blair, see what's happening in the USA.
I work for a multinatinal company that would outsource its granny if it could, and I have to say that I'm vehemently opposed to the principle of outsourcing in almost any respect, hence problems with hospital cleaners etc etc. In fact I cannot understand whay we haven't learned our lesson yet in the UK.
Basically, how can it be cheaper to pay someone else to do the SAME job and make a margin on the business also. I would respect the government a lot more if they scrapped outsourcing and just made sure that civil and public servants just did what they were supposed to do efficiently !
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Less politics, more motoring please.
DD.
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>>Basically, how can it be cheaper to pay someone else to do the SAME job and make a margin on the business also
IF you're really interested then ask that in the IHAQ thread and I'll try and answer it. But I have a feeling Dave might jump up and down on me if I tried in this thread.
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