This piece of information is really surprising. If you think outsourcing is done chiefly to save cost, the study done by
ReThink Recruitment will prove you wrong. According to the firm it says IT firms are actually charging government bodies more than twice the market rate for staff. Broadly IT outsourcers hire staff for about £700 per day before posting them to work on government contracts at a charge of up to £2,000 per day. The report says.
The question that arises from this situation is, are outsourcing providers in the name of getting the job done are taking the public sectors on ride?
Managing director Jon Butterfield said,
Supply chain for key IT project skills is several tiers high, and the link at every level is taking a cut. The final rate the outsourcing provider bills the client is often several times the original price of the skill at the bottom of the chain.
But the solution that is given however does not sound all proof. In-house or temp staff taken from recruitment firms, I doubt can provide comprehensive exclusive and niche solution.
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