TCS last man standing for the UK Pension body outsourcing contract
SOURCE: EconomicTimes
DATE: Dec 15th, 2009
Looks like TCS is the sole bidder left for a modernization contract for UK Pension body PADA( Personal Account Delivery Authority). A number of the other European bidders according to the article are out.
TCS has had some recent success in the UK public sector outsourcing market. The last deal they have announced though with Cardiff was more of a partnership deal.
UK government has targeted a saving of $10.6 billion with a total budget of $ 36 billion. If these numbers are correct this is a very large percentage of savings the government is looking for. TCS and similar offshoring vendors may be low cost bidders but it is hard to see how they would be able to bid low if they are going to keep jobs onshore, and pay their employees a competitive salary. Cost saving typically by the outsourcing vendors are achieved by moving work offshore and leveraging their low cost delivery locations.With the unemployment rates in UK continuing to be high, the challenge also with the public sectors looking to outsource is how they can add to jobs, a potential source of revenues for the government and not move jobs offshore and provide additional services on a lower budget.
Unlike corporations which are for profit entities, decision making specially around outsourcing and working with non local vendors is a bigger challenge.
Related Posts
You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
