1 post • joined Tuesday 23rd October 2012 08:27 GMT
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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