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Co-Operative Bank today 'terminated' Capita's outsourcing contract years before it was due to expire

Anonymous Coward
Anonymous Coward

It can be a lot cheaper if it's possible to scale the labour per requirements.

For example, I offer outsourced IT services where I can provide the skills and expertise of 10 people for far less than the cost of employing 10 people.

10 folks would cost a form around £400k-£500k in salaries and wages plus the associated space to encapsulate them all, the energy required to keep them warm, the equipment etc etc.

The difference between an outsourced team and an in house team is that the firm hiring can take advantage of not having to pay for the engineers to sit around for large periods of time.

Dealing with multiple clients doesn't have to affect response time, time to resolution, delivery of projects etc.

If you're as big as crapita it does affect quality of service, but for smaller outsourcing firms it doesn't.

In fact it can improve the service because I can throw as much or as little skill and talent at a problem as is necessary. An in house team you're stuck with what you've got which is often pretty average.

Non-technical firms like banks etc tend not to have the capability to understand or care about staff that aren't part of their core business offerings. Whereas a tech firm will usually understand and value it's technical staff. Not all of them, granted, I worked for an MSP in my earlier years that treated me like shit. Never gave me a payrise in 6 years, never promoted me...just exploited me.

Because of my own experiences, I don't do that. I never underpay and I reward performance.

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