Investigating Outsourcing

Mar 1 2010   10:51AM GMT

Will local government “perfect storm” create outsourcing frenzy?

KarlFl40 Profile: KarlFl40


Multiple reports in the press today talk about the massive job cuts expected in local government.

Up to 100,000 job cuts in local government are being predicted by some.

The Guardian, quoted Dame Margaret Eaton the chair of the local government, as saying local government is in a “perfect storm” in that during recession there is increased demand for council services but less money to provide services.

Back in January Socitm said there was a 10% cut in IT staff at local authorities last year. It also said that outsourcing will increase as a result.

Councils have to provide services by law therefore service providers could allow them to offload costs and retain service levels. The services that councils offer lend themselves to being outsourced in many cases but the difficulty in making public sector workers redundant is an expensive problem.

The government might decide to transfer thousands of workers to outsourced service providers to take them off the wage bill. If thousands of workers are transferred the outsourcing suppliers could have a TUPE overload.

But according to a contact of mine a legal president known as Beckmann Martin makes it expensive for any public sector organisation to offload workers to outsourcing service providers. Basically this means that workers over 50 will get massive redundancy packages and a new employer would not want.


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