Has HR outsourcing efficiency drive cost £137m more..?

WHEN the then finance minister Peter Robinson announced in January that Fujitsu Services would be handling all Civil Service human resources, he added: “Northern Ireland citizens want and deserve an efficient and effective public service. Their expectations of the standards that public services should meet are high and rising.” …as are the costs to the taxpayer, if Private Eye is correct. Buried in the August 22 issue, HP Sauce noted that “the cost of outsourcing all civil service HR to Fujitsu has spiralled from the planned £328m to £465m”. If the figures are right, that means that DFP’s plans for “greater efficiency which, he [Robbo] pointed out, will be to the benefit of the taxpayer” have actually cost the taxpayer a mere £137m more. Bargain!

  • Outsourcing has so many benefits:
    1) Cost Savings
    2) Time Zone Benefits
    3) Quick Turn Around Time
    4) Standardizing Business Processes
    and many more….


  • frustrated democrat

    There are only savings to be had if the people currently employed by the civil sevice are no longer employed.

    Will that happen?

    Will the civil service shrink?

    What do you think?

  • BG, when you set that alongside the McLaughlin and Harvey legal action and the much smaller but beautifully formed Rathlin ferry fiasco it’s to be expected that Ministers Robinson and Murphy will both be feeling a bit queasy.

    I wonder why the Davenport Diaries left out the legal action and referred the ferry story to the moderators.

  • barnshee

    Another disaster waiting to happen
    F/Siemens have already botched the take over at HMRC– spiralling costs service worse than before

  • perry

    We’ve an education system built for snobbery and white collar work. We’ve an oversized civil service. We’ve a call-centre economy. We’ve a litigious workforce, unbelieveably tightarsed and humorless labour relations regulations and we’ve increasingly well-trained employers and employment lawyers.

    We should be the HR admin capital of the world!

    Just think – Compass built a 360,000 workforce business off the back of schools and works canteens.

    This service shouldn’t have been outsourced. It should have been hived off into a semi-state company and told to find a few private sector customers. We could have floated it as a PLC in a few years and made some money.

  • perry

    Hold up,

    The Statistics people say there are 217,865 people in covil service employment in NI (as of January, of which;

    NI Central Government are 116,525
    Bodies under aegis of NI Central Government 74,719
    UK Central Government 6,216
    Local Government (District Councils) 11,597
    Public Corporations 8,808

    Even if this £465M is spent on all of these that’s a fee of £2,134 per head. Anyone know what’s in it? Does it include training costs passed through?


  • George Jones: “Central government has created partnership – notably local strategic partnerships (LSP) and local area agreements (LAA), really types of quango, that weaken the grasp of local government over its localities.” Jones wonders who leads LSPs, LAAs and public service agreements that reflect partnership between central and local government. The answer, he says, is central government, “letting local authorities exercise discretion only if the centre judges them reliable”. He doubts the public has a clue about who is responsible for what in the partnership maze.

    Tizard recognises a lack common accountability and performance management. “This makes new demands on elected members, especially on leaders, to embrace new relationships and create new accountability,” he says.

    Are our MLAs sufficiently competent to meet these demands?

    Fujitsu said to be preparing £700m LSP claim

  • crownesq


    I would re-do your sums my understanding is that contract only applies to the 29,000 Civil Servants directly employed by Government. The majority of the above organisations have retained their own HR departments as the conditions of service etc are all different.

    Word is that the system does not work with long delays and poor service emanating from the providers.

    Another grand experiment gone wrong – as usual Government eventually go for the latest business trend but always at the point when the private sector are walking away from similar out-sourcing due to high costs and low performance – difference private sector do not get themselves locked in.

    Similat scandals await the Eyes writers as contracted out IT services also escalate in cost and service takes a nose dive.