Re: Brown Envelopes
There's a fair few reasons this happens, as I'm sure you are aware:
There's not that many companies out there large enough to take on contracts of this scale. Those companies also promise those wonderful Rainbow Farting Unicorns (and then deliver a donkey with a cone taped to the head and ribbons tied to the tail. One with flatulence, obviously) to make their offerings look so wonderful. Their ploy is to get something in that technically does the job, then milk the support side for as much as they can get.
Compounding this is the need for that company to be vetted and approved: Larger companies can afford this easily, while the mid-sized can't. Smaller can as they can specialize in this kind of contract, but they can't handle the scale of project so that puts them out of the running.
In house? Don't have the size of in house teams to handle larger projects hence it getting outsourced. Ideally support should be moved in house, but the big corpo's want the support contract to milk it for everything they can get. SLA's are horrible at that point (yes, looking at Crapita specifically, but Fujitsu isn't that much better) but they're sold on the promise of it being cheaper and better than in house support. Yes, I do have first hand experience of this - thanks to Crapita, who were told, specifically and explicitly NOT to review the IT department when doing a review of processes to offer recommendations for improvement: They then ignored that entirely and did review IT and then tried to present their recommendations to the board of INCREASING the IT budget in order to outsource IT to another branch of Crapita for an inferior SLA contract. Seriously: They'd charge per callout if it wasn't what they considered 'critical', and that list was miniscule compared to what IT covered out of hours, with a faster response time than Crapita was offering! Yet other hospitals bought into Craptia's promise of those mythical Unicorns only to find costs skyrocket, to then try and hire back their IT staff they'd laid off in order to get Craptia in... and yes, the whole process was a nightmare and exceedingly expensive.
I know, rambling and ranting, but considering the cost of a biro to the NHS was five times the cost of the same biro from the same supplier to a private company?
Well, the truth is most companies would love to get a government contract, simply so they could milk it for all it's worth, and the government keeps believing the bullshit they're fed that outsourcing is cheaper without reading the fine print.