reported in the Register
today, IT firms are ripping off the government by charging more than twice the
market rate for staff, according to a recruitment company.
said in a statement that project managers, business managers, technical architects, software
consultants, programme managers and IT directors were all hired out by
recruitment firms at a charge of between £600 and £650 a day. They would then
be posted on government contracts by the big consultant groups, i.e. EDS, Accenture, PWC, etc between £1,200 and £2,000 a day.
director Jon Butterfield said the public sector found it harder to control its
staffing costs when it outsourced its project management to external
supply chain for key IT project skills was several tiers high, he said, and the
link at every level was 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.”
ReThink didn’t say was that the average rate for the roles listed above to the
contractor were only £300 to £500 per day.
consultants consistently tell candidates that working for public sector clients
is at the bottom end of the market and rates are carefully capped.
agencies would be better able to control their costs if they were to recruit
direct with contractors rather than via agencies, or to allow the big
consultancies to set the rate by which government is charged.
they were to recruit direct using the popular electronic recruitment services such as Jobsite, they would reduce their staffing costs by
over 60 percent, and their choice of candidates would be much higher, with more
relevant skill sets available to them. This in turn means that as staffing
costs are the biggest part of the PFI schemes, they could run
these projects themselves, at a fraction of the overall cost, rather than
wasting billions of taxpayer money on the PFI schemes.
would be able to recruit experienced contractors, providing true value for
money, rather than the plethora of graduates
preferred by the big consultancy groups, as I wrote about in December06.
Also of concern is the distinct lack of IT knowledge within government, which if properly staffed with good skill sets would stop many of the abuses by consultancy groups setting IT capability and performance expectations way too high.
downside to government of course is that Gordon Brown would not be able to hide
the costs by keeping the PFI schemes off the books, and run up debts to IT
companies that will now take generations to pay off.
Perhaps the Smith Institute could advise Gordon Brown on how to do this more cost effectively to the advantage of the taxpayer.