They outsourced IT services where I work some years ago, replacing a handful of programmers on 25k.
Now we have many times more private sector programmers on 1k a day and their managers on 1.5k a day. And that’s not including the seemingly never ending need for non technical public sector IT contract managers, and their managers earning 30 – 40k.
Costs went up 10x easily. And you can’t get anything done without additional funding.
We had a quote recently from contractors for £135 an hour.
That is the single biggest problem with the public sector, they pay way over the odds for IT compared with the private sector and I assume they pay way over the odds for other services. Do you think Tesco pay the rates to IT suppliers you quote?