In sight, even with the recovery from the economic downturn the government are still choosing to outsource some of its operation to different outsourcing companies. The Governments such as India and the US are taking advantage of the outsourcing to help bolster their operation and provide their constituents with the quality services. The companies JP Morgan and ATS have both signed outsourcing contracts with the government. By the government of Canada to provide an expanded set of collateral management services for derivatives. JP Morgan was the first to introduce end to end collateral management solution for OTC derivatives services back in 2005. The ATS Corporation also landed a $27.5 million, four year government contract with the US Department of Defense ATS that will be providing the DoD with project management support, Information Technology infrastructure operations and maintenance, information assurance and application software development and maintenance.
From the financial intelligence unit, Ministry of Finance, Union Government where Wipro will be implementing FINnet as well as the development of Portal, Data warehousing, Deduplication, Analytical application, and ERP Implementation at the data center and disaster recovery site of the Financial Intelligence Unit. The Tata Consultancy Services formed a joint venture with the government of Maharashtra to launch an internet based online citizen services portal, for the Maharashtra citizenry. The government’s are taking to recognize companies with the exiting contracts including the Harvey Nash’s selection by the UK Public Sector as the Preferred Supplier of Recruitment Services. The Canadian Union of Government Professionals accused the Education Minister of wasting money by the outsourcing exam correction to private companies, alleging that the cost of the services would be much too expensive.
The TCS’ Passport Seva Project has to come under the fire, the project with the Indian government has yet to materialize the following technical glitches, the fuel to the fire is that the employees are vehemently protesting government plans to turn over the management of passport services to a private firm. By the different governments of the outsourcing companies and their capabilities even with the increasing recognition. Governments will still have a hard time convincing their respective constituents of the benefits of the outsourcing. It is likely that a large bulk of the profits of some outsourcing companies for the quarter will be coming from the government contracts. The other private companies may look elsewhere or even in house for their business process with the recovery in sight. The governments on the other hand still need to save money even with the recovery.
REFERENCE:
http://www.blog.infinit-o.com/outsourcing-companies-contract-government/
