But perhaps the most interesting aspect of the deal is the offshoring issue. Steria are already the Department of Health’s partner in the NHS Shared Business Services operation. That has used offshore resource, although SBS would also say they are employing more people in the UK year by year. And at the Cabinet Office briefing session last week, I had a couple of off-line chats which made it clear that offshoring is very much on the agenda for SSC2.
The argument in favour is this.
If SSC2 is to be a success, and grow its business – so not simply maintain its current central government work – then it has to be competitive. It will be competing against other back office shared service providers who utilise offshoring, so excluding that option would handicap SSC2 and therefore negatively affect the job prospects of its staff. It might also reduce the return the government might make (as it retains a 25% stake).
However, there are several arguments against offshoring too.
- Shouldn’t the government try and make this an advert for running shared services within the UK? Aren’t there ways of using technology and designing processes to showcase what can be achieved without offshoring? Wouldn’t that be the best news for UK plc?
- Whilst we’re all believers in free trade, it is somewhat annoying that countries like India swallow up UK jobs whilst erecting its own barriers to entry in areas where UK firms are strong, such as retailing.
- And … it just doesn’t feel quite right somehow, that work that is so close to the heart of government, (such as processing government payrolls, paying government invoices), should go abroad. Not a logical stance perhaps, but emotionally, I just don’t feel very comfortable with it.
The problem is that once the decision to move to a JV is taken, then I assume that after the initial period, the work will have to be re-competed openly. So at that point a cheaper provider might be able to win the work from the JV – hence the need to be cost-effective and competitive. But whilst I’m not protectionist by nature, and I can see all sides of this argument, I can’t help feeling sad that work and jobs are likely to go from the UK.
But, as in all things political, the key question is this – do the voters in the key 100 marginal seats care about this? I have my doubts.
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Autor(en)/Author(s): Peter Smith
Quelle/Source: Spend Matters UK/Europe, 11.11.2013
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