Reply to post: Queen's Speech Policy Paper

Capita flogs Asset Services division for £888m

Wensleydale Cheese

Queen's Speech Policy Paper

"introduce a Special Administration Regime to ensure the continuing operation of the national smart meter service if the provider becomes insolvent"

Doesn't seem to be a resounding vote of confidence in Crapita. Perhaps the government knows something we don't?

We do know. What a waste - Outsourcing and how it goes wrong[1]

It describes how when industry perceives the risk for taking on a given project as too high, no suppliers come forward with a tender. The government then introduces carrots in the form of allowing the supplier to simply walk away if things don't turn out well financially. Summary: what appears to be a mediocre rate of return turns out to be quite stunning when the risk element is removed.

Lots of other interesting stuff in there as well, such as when councils outsource, and the only way the supplier can make a profit is to reduce wages, that in turn generates a larger welfare burden for the council.


Format: Paperback

ISBN: 978-0-7190-9953-3

Pages: 120 Publisher: Manchester University Press

Price: £11.99

Published Date: September 2015

Also available in digital format from a couple of places.

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