The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
There will always be room for both options on outsourcing, it is a two way street. However it is a process that requires patience and a workable plan. The view that huge sums of money can be saved is misleading it actually depends on requirements. The number of councils that have failed is increasing. Its not about saving money its all about power in the council. If you look at the maths in Birmingham the costs involved show that saving money was going to be a very hard ask.
As always the reason for change must be based on modernisation, service improvement and cost savings.
After a long history working in IT. IT can and should make a difference when it is done right!
The focus should always be the end customer.
IMHO of course!
There is a bigger story than that. Birmingham migrated from a successful outsourced solution, and went in house. The Oracle solution as you say was a disaster.
Birmingham City Council (BCC) sank £46.5 million ($58 million) into a “disastrous” attempt to implement Oracle’s financial reporting system.
The BCC intended to replace SAP with Oracle’s Fusion Cloud ERP (Enterprise Resource Planning) system.
There are other examples
IMHO very few public sector orgs have the skills to manage such a large project. They are complex and the risk factor is very high. As this is a public forum one needs to be careful in expressing opinions, being right does not always protect you.
Do your own research! It is there if you look for it!
Customers who decide to go it alone and use AI. There are several large councils that tried DIY and are now bankrupt!
Easier said than done. I also remember one large NHS trust tried that and also ended up in trouble.
It takes a long time to design and plan a solution. These skills are hard to find and very expensive to deploy.
Best to find a good supplier and detail your problems vs solution in the contract!
But this is just common sense imho!
AI is about automation, that is what outsourcing is all about. AI is just a different set of toolsets. Its the decision making process and access to data that makes the difference. Thats why Microsoft has teamed up with Capita. Microsoft have the toolsets whilst Capita have access to the data.
We are in an area of huge technology changes, Networks, automation etc.
The government needs to save money and automation is one way to reduce costs. The underperformance of Government services, strike action and civil service pensions. The perfect storm. Something has to give.
Does not matter which party wins, automation is the only way forward.
When you are sitting at the poker table with a winning hand ( Technology, understanding process, access to the data, political connections, the right business partner).
Then you understand the true potential!
IMO of course!
The change in Capita leadership takes place next week. Jon has sold if the family silver, and the remaining business units will form the foundations of the new Capita. Its been a revolving door for Certain Capita management as they exit the business. Adolfo will bring in his own team. I don't expect a full announcement until March but I do expect a drip feed of announcements between then. As the business units start to morph then staff reductions will start with new hires to build the new teams. The change from ugly duckling to a beautiful Swan will commence. The opportunities for new contracts in the UK is good based on the reduction in the number of Gov UK employees.
It does not matter if the Gov is red or blue changes are coming!
Https://m.belfasttelegraph.co.uk/business/northern-ireland/revenues-fall-by-20m-at-outsourcing-firm-capita-due-to-contract-losses/a953780532.html
looks like Simplification is on the way for Capita according to BT.
We are heading into Q4 and the beginning of October is the start of Q4. Could be an exciting 3 months