Tory outsourcing scheme costs more than it saves
A BOTCHED scheme to cut government expenditure by outsourcing back-office staff ended up costing more than it saved, MPs found yesterday.
The public accounts committee (PAC) slammed “ineffectual” management of the programme, which deluded officials had hoped would save up to £400 million a year.
But after two-and-a-half years of operation the scheme has saved £90m — less than the total investment cost of £94m.
The committee warned that ministers must act to improve leadership and governance to prevent any more money being wasted from outsourcing back-office staff to shared services.
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