Re: £140 million over 5 years for 800 staff
I've heard it said that an employee costs twice what they're paid as salary, which makes the average salary £17500.
Well, the add on cost per employee is more like 35%, including NI & pension costs, holiday and sick leave (when you're off and being paid, somebody else has to be paid to do your job), then you've got training, internal support functions, payroll, HR et al, plus accomodation & facilities, and IT infrastructure, telephony, CRM and desktop. However, that 35% is per capita of call handlers, there's overhead on top of that form line management - directors don't handle calls, senior managers don't handle calls, but they're still part of your total cost build, including their high salary, better pension, bonus and car etc. The value of that line management overhead is very variable, and depends on the breadth of the management pyramid and how much they are paid.
So £35k per employee is an entirely realistic figure that I can recognise, but probably translates to a circa £20k salary for the staff in the call centre.
Under TUPE and UK living wage and pensions laws, there's now little real financial advantage in outsourcing to a UK based outsourcer, so my guess is that Tesco TUPE their staff to Crapita, and then Crapita move the work offshore, all of which is already planned.
Biting the hand that feeds IT
