Reply to post: Re: Turn around in its grave, maybe ?

Capita reports pre-tax LOSS of £515m for 2017

handleoclast

Re: Turn around in its grave, maybe ?

No bidding for unsustainable contracts ? At least somebody seems to have found a cluebat under the sofa ...

Yeah, my first thought was that bidding for contracts you know to be unsustainable is crazy. You might find yourself in a contract that you thought was going to be sustainable but turns out not to be, but bidding for one you know is going to be unsustainable is seriously insane.

Then I thought some more, and it does actually make sense (for small values of sense). If you have deep enough pockets (like Microsoft and Oracle) then going after unsustainable contracts can be a good long term strategy. Win enough of them and some of your competitors go under because they don't get any contracts at all, or get contracts by underbidding your underpriced bid. Once you have a monopoly on the market the sky is the limit.

Of course, it doesn't always work out that way, but some companies think it's worth a try.

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