An interesting article can be found on The New Statesman rolling blog concerning outsourcing in local government. The basic sentiment as one would expect is to reject outsourcing as a source of all evil. Life is never as black and white as that so outsourcing cannot be dismissed simply on ideological grounds, but hold on a moment. The author, Kate Belgrave, examines the contrasting financial performances of certain outsourcers including Capita and Mouchel. Game on!
The overwhelming conclusion that the reader draws from the blog is that local government are no good at specifying or letting outsourcing deals. The work that the London Supplier Relationship Development project developed over the last three years on information arbitrage and understanding the commercial drivers behind big outsourcers and the techniques that they use in winning business is in urgent need of a wider audience. Interestingly, only Stirling Council has picked this up in their Make or Buy programme.
Unless and until local government starts to wise up on outsourcing and rises above stale ideological arguments as to the merits of private v public, two things are certain. The profits of the likes of Capita will increase, and there will be more Southern Cross and now Mouchel moments in the 2012 pipeline!