Archive for August 5th, 2009
Should a government outsource?
The UK, like many major nations at the moment, are facing up to a tough few years on the financial front as the recession takes hold. Given that the Labour party are desperate for votes, they know they cant be seen to let unemployment creep much higher than its current levels but with so many different factors impacting on the economy at the moment, they may have to take some unpopular moves. The nature of UK politics is very cyclical and it feels as though the UK is ready for a change which means that no matter what the Labour Party does, they will likely lose the next General Election and see the Conservative Party sweep back into power. However, Labour does know they can still place a small fight to save their position and part of this may revolve around their spending levels.
One way the Government can save money without costing a dip in the quality of the service of their needed tasks is through outsourcing. A Government that turns to outsourcing is always taking a risk due to the emotive reactions that people have at the prospect of losing their job but when it comes to finding the money to fund some vital new taskforce or provide cash for another area, it can be the best option open to a Governmental body. Therefore, the Labour parties in the UK have been making positive noises about moving all of its tax processing capabilities and tasks offshore in a move which some industry experts suggest could save the Government around £200m each year. There would be a certain irony if the Labour party brought this move in and the Conservatives were to benefit if they seize power next year but such is the nature of politics.
The UK Government already undertakes an element of its tax processing duties, like the Pay As You Earn elements and the self assessment forms with a company called Capgemini taking control of these. This firm is also responsible for the processing and management of the National Insurance records for the UK, so there is already a sizable amount of tax record jobs being sent outside of the UK. However, the move to fully outsource the tax work will come as a shock to many UK citizens, especially those who are currently without a job but given the economic nature of the world at the moment, all avenues have to be explored.
Of course, with these records being of a highly sensitive nature, there are some people who have concerns about the safety of them being allowed about of the country but they are no more at risk than they would be anywhere else in the UK. It is obvious that certain procedures must be taken to maintain the integrity and safety of these products but it should be noted that the reliability of outsourcing is much higher today than it has ever been. Just because the information is out of the UK does not mean it is at any greater risk.