Message to Government: we’re better and cheaper

ONE of today’s burning issues is how to make much-needed efficiencies in public sector spending.  The Institute for Fiscal Studies estimates that under plans made in the most recent Pre-Budget Report, the Treasury needs to find a total of £36bn in cuts in the three years to 2013-14.

Last year, a report from the CBI business group called Doing More With Less highlighted an “undesirable and unsustainable” 0.3pc decline in public sector productivity between 1997 and 2007, compared with a 2.8pc rise among private sector employees.

It also said average pay in the public sector had jumped 77pc since Labour won power, outstripping a 50pc cent increase among private sector workers.  The CBI wants to save £136bn in the next five years through a root-and-branch reform of public service delivery.

A research analyst at Seymour Pierce, Kevin Lapwood, said the 14pc or £80bn of public services currently contracted out could easily rise to £140bn or more over the next five years.

According to the Varney Report, the UK public sector currently operates 730 call centres for services as diverse as taxation and health.

A huge opportunity exists in this field, for both the government and business. If the government engaged with experienced outsourcers, they could benefit from similar efficiencies in cost and productivity that our clients have experienced.

In essence we could save the Government money while delivering a better public service – letting them get on with what they were elected for: running the country!

Denis Creighton, is European CEO for the outsourcing call centre company Conduit