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Automation, not cheap labor, is reshaping outsourcing

roymoggadmin

The offshore outsourcing of IT grew because of the cost of offshore labor. A software engineer in India is paid but a fraction of what a U.S. worker earns. Payscale puts the median salary for a senior software engineer in India at $10,000. When IT services firms bring in H-1B visa workers, these workers earn substantially ...

Government behaving badly on outsourcing contracts

Royston Morgan

Many of the problems in government outsourcing result from bad behaviour The boss of outsourcing giant Serco has accused the Government of “behaving badly” by passing off unreasonable contracts to suppliers, ignoring its own guidelines and shrouding its decisions in secrecy. In a Commons hearing on lessons learned from the collapse of Carillion, chief executive Rupert Soames ...

Cielo is a Leader in recruitment process outsourcing

Royston Morgan

“As we continue to explore new frontiers in technology, extend our reach to new places around the world and break new ground in the candidate and client experience, we remain committed to maintaining the high quality of service our clients expect from us,” said Sue Marks, Cielo’s Founder and CEO. “Once again being recognized as ...

Government contracts still driven by price

Royston Morgan

Price still main driver in outsourcing selection Outsourcing sector bosses have told MPs that the Government’s procurement proposition had gone “too far” in a quest to keep costs down and that the system needs overhauling, in the wake of Carillion’s collapse. Speaking to a parliamentary select committee on Tuesday morning, Rupert Soames of Serco said that in his four and a half years ...

A crisis in local government outsourcing

Royston Morgan

News of the latest outsourcing giant to hit choppy waters Following the collapse of Carillion in January and the losses reported by Capita the announcement of a massive drop in Interserve’s share price comes like the arrival of the proverbial third bus. And although each company is different they have certain similarities which raise important questions about ...

Aberdeen council leaders won’t rule out more outsourcing in bid to save £250m

Royston Morgan

Aberdeen council leaders have refused to rule out outsourcing services. The authority is aiming to trim around £250 million from its budget in five years as part of a massive restructure and has already proposed cutting 370 jobs through voluntary and early redundancy. Yesterday members of the strategic commissioning committee clashed when the opposition SNP group proposed ...

What the outsourcing sector can learn from the Carillion collapse

Royston Morgan

The death of Carillion triggered an outpouring of theories about the shortcomings of public sector outsourcing. But it’s worth remembering that until that fateful moment in January, the industry was basking in a long series of successes.  At the beginning of the year, 200 small companies a week were signing up to the Contracts Portal, a ...

Outsourcing tech: the shift from IT giants to specialist platforms

Royston Morgan

The global technology industry is facing shockwaves as the outsourcing trend of the past decade goes into reverse. Where once the world’s businesses handed over the management of all their tech needs to single IT giants, today they are more likely to work with a wide number of specialists.  The shift away from single-vendor outsourcing has ...

Why strong partnerships are vital to outsourcing success

Royston Morgan

All too often, failed outsourcing projects stem from a breakdown in relations with the customer and it’s usually the supplier who gets the blame, accused of overpromising or exceeding the agreed time or budget. But times are changing for maligned outsourcing suppliers as customers start to accept greater accountability.  As Anthony Potter, partner at consultancy Elixirr, ...

Moral Choices

A crisis in local government outsourcing?

Royston Morgan

News of the latest outsourcing giant to hit choppy waters is worrying for anyone with responsibility for their council’s contracts. Following the collapse of Carillion in January and the losses reported by Capita last week, the announcement of a massive drop in Interserve’s share price comes like the arrival of the proverbial third bus. And although each ...