Slashdot Mirror
£32k a Day For Birmingham Council Website
An anonymous reader writes "Birmingham Wired have uncovered that Birmingham City Council spend on average £32,000 a day maintaining a council website that has cost the tax-payer over £48 million to date, while councils nationwide prepare to say goodbye to 26,000 jobs due to budget deficits. Capita, a London based outsourcing company, states on their website: 'To date we've invested £48.4m in a combination of staff training, network upgrades, server replacements, hardware and software — and we continue to drive efficiency through innovation.'"
I have a T-shirt from think geek that sums it up:
"Technical Support: Your ignorance is my job security"
I wonder if this is the employee uniform at Capita?
They're called Crapita by Private Eye for a reason. However public service IT in the last 3 decades is a long story of waste, incompetence and stupidity. Hooray for privatisation - a worse service for a higher cost!
As always, capitalism only works when all sides are peers in the transaction. That means that the person, or, in this case, the government bureaucrat, who looks for private companies to tender on a contract needs to be aware of what they're asking for. They need to understand what the transaction entails, and they need to understand the alternatives (whether hiring someone to do it in-house, or it's simply the competition in the marketplace). Any time you are at an informational disadvantage, you open yourself up to being taken for a ride. There's a reason why government tenders generally include the clause "we reserve the right to go with any vendor, not just the lowest bid" or something like that: so that they can weed out crackpot offers.
It seems to me, then, that the person in Birmingham's city government who decided to go with this outfit was at an informational disadvantage and could thus be duped by incompetent and/or malicious corporations. They apparently took the lowest bid, not the best bid.