Saturday, 10 March 2012

Insourcing - when privatisation inevitably fails, bring it back!

Computer World UK reports that Tory led Somerset County Council is set to bring back in house 160 staff from its £400m Southwest One outsourcing venture with IBM - 'the move follows a review by the council, which concluded the venture was failing': http://www.computerworlduk.com/news/public-sector/3342802/somerset-insources-160-staff-from-troubled-southwest-one/

There is a discernable and very welcome trend towards insourcing due to contract failures. In December 2011, Sefton Council on Merseyside terminated a £65m highways and technical services contract with Capita Symonds (a division of the Capita Group), because it failed to deliver expected savings:
 http://www.liverpoolecho.co.uk/liverpool-news/local-news/2011/11/25/sefton-council-confirms-plan-to-tear-up-a-65m-contract-outsourcing-services-to-the-private-sector-100252-29839096/