It appears that despite the UK economy facing difficulties, the outsourcing market is steadily becoming stronger and more active after a quiet 2009 and 2010. According to Capita’s recently published interim management statement summing up the first 4 months of 2011, the company has performed solidly due to a clear and strong ‘appetite’ for outsourcing.
The areas in which increased demand has been most significant are pensions and local government markets. The reason for an increased demand in the government area is reported to be due to the Government seeking to deliver public services at most cost effective price. With the ever increasing cost of employing staff and employment regulations, many small and medium sized businesses are beginning to recognise the value of outsourcing. The use of an outsourcing model provides business with access to a skilled workforce who can fulfil the tasks at hand efficiently, but also in a more cost effective manner.
Response to FT article about changes to pension contributions
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23-02-2011
Whilst the announcement about pensions was really nothing new yesterday, it seems to have grabbed the headlines much more than when Labour talked about it.Most commentators recognise that something needs to be done about pensions, but changing people's attitude to saving for retirement is difficult. Dare I say it, but this 'enforced' pension contribution is probably a step in the right direction.
However, with the majority of the population employed by the micro and small business sector, the burden upon employers in terms of administration and contribution cost is therefore significant. And, coupled with the possible change in maternity pay legislation, will all these additional costs prove a deterrent for micro and small businesses to expand and therefore fuel the economy?
