* Posts by peterrm

1 post • joined 23 Oct 2012

A hundred Brit IT bods' jobs under threat at Direct Line

peterrm
IT Angle

nothing to do with actual cost savings. everything to do with balance sheet manipulation

Moves like this are never actually about cost savings/synergies or rightsourcing.

The article says it all when it mentions about the IPO.

They are interested in manipulating their metrics prior to the public offering.

Headcount / Turnover is an important metric. Outsourcing reduces headcount while not impacting turnover.

The fact it reduces profits by increasing costs is of no consequence, headcount/profit is not the metric.

Delivery will suffer, shareholders will suffer the UK economy will suffer but the analysts will be happy.

That is what counts in situations like this.

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