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Contract role to be outsourced - can I tender for it?

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    Contract role to be outsourced - can I tender for it?

    Story is that I came on board as the only member of the IT department for a business with around 50 staff in East London.

    I have been there for 18 months and now possess all the knowledge of the IT systems as I am the only person who has done any IT since I joined.

    The "IT manager" doesn't know any IT and now wants to outsource as I am too expensive. I said get a couple of permies but he has his mind set on outsourcing which I reckon will cost the same as me as they want someone onsite all the time.

    Now, I have the ace card (I do right?) as I have all the knowledge of their bespoke systems - everything in fact IT related, servers, and workstations - the lot.

    He has asked me to source a company to takeover. My thought is that they will see it as a high risk as there isn't any on-site knowledge. Solution is obviously for whoever gets the outsource contract to hire me.

    Everyone is happy; I get my cut, and company gets the same great service etc etc....

    Bottom line is that it is easy work, easy money and I can work from home, come and go as I want - proper contractor, good contract, prompt payment and I keep everything running - not a single problem since I came on board.

    IT manager is a complete numpty and thinks outsourcing is the answer - it will be cheaper and the same great service of course!

    If I break my plan to an outsourcing company - is it likely to take a sour turn and the IT manager feel ripped off (not that I care too much!)? If the only offer they all put on the table is that I am part of the deal he either has to pay them or pay me?

    He really thinks that now he has had 18months of contractor time he can let things go for a few years and tick-over with an outsource solution....

    He could of course just make a maintenance agreement direct with me but it wont be full time and I’m not sure I can find another role to fill the gaps – unless I treat the whole thing as simply easy money, enjoy the free time and just keep raising that invoice!

    #2
    Firstly, nobody is non-expendable to any company... no matter how much they lose, the manager will always fire you if he feels like it.

    Secondly, no guarantees you will be included in any deal with an outsourcer... if your current employer is taking that route 'as he thinks he will save money'... what makes you think a company supposed to replace you will pay you the same money you currently earn...?

    You are in territory which is familiar to many of us...

    'mentoring'

    Its a phrase that basically means 'we pay development / support contract rates' but what we want is 'a team leader, trainer, and project manager all in one' to teach people what you know, oversee the technical handover, then feck off...

    Thats why you often hear people repeat the phrase 'if it aint in your contract....'....

    Companies use us. Agents use us. We use agents. We use companies.

    It all depends on how amicable, professional, and at heart, mutually profitable the relationship is, as to whether you get a renewal.
    Last edited by mcquiggd; 8 March 2006, 00:02.
    Vieze Oude Man

    Comment


      #3
      Who decides the handover period and how long can they last?

      Obviosly the boss will want as short as possible to avoid paying twice for the duration. I will want as long as I can get away with and the outsource setup enough for them to feel happy - or rather enough to be able to get by and then blag it when problems occur....

      Can you get two 3rd line support persons from an outsource setup on-site all day every day for less than £80k/pa all-in? This would be covering one main site, the DR site, DR support, all projects, support for travelling users etc etc.

      Comment


        #4
        From my experience the outsourcer will say they can do it for less, but the company will end up paying much more. It's called business.

        There again I usually get called in when such projects fsck up so I might be getting bad sample data.
        Insanity: repeating the same actions, but expecting different results.
        threadeds website, and here's my blog.

        Comment


          #5
          Tell them the service is already outsourced (i.e. to you), and negotiate on that basis - i.e. try to find out why they're unhappy with your service. Maybe they'll agree to pay you the same if you take on some additional responsibility.

          I don't understand why you want to work for an outsourcing company, when in essence you are an outsourcing company.
          Will work inside IR35. Or for food.

          Comment


            #6
            Originally posted by VectraMan
            Tell them the service is already outsourced (i.e. to you), and negotiate on that basis - i.e. try to find out why they're unhappy with your service. Maybe they'll agree to pay you the same if you take on some additional responsibility.

            I don't understand why you want to work for an outsourcing company, when in essence you are an outsourcing company.
            The only issue is cost. I've been monthly rolling for 18 months so I can't see any other problem - certainly nothing obvious. I did offer to go direct and they would save the 15% the agency take but the IT manager said he didn't want to upset the agency!

            The IT manager wants to use someone like IBM or Fujitsu - says they will be cheaper than using the agency. Originally managment thought that all the IT
            work was "done" and that there was no need for anyone.

            Not really fussed - can easily get another contract for more money

            Comment


              #7
              Not really fussed - can easily get another contract for more money
              Walk away then. Immediately. They're clearly not worth the grief.

              BTW if you're on market rate, and the agent adds 15%, point out that the replacement will be on less than market rate and therefore almost certainly less skilled in the role, and FJ and friends will add 150% for a non-revocable three year deal.
              Blog? What blog...?

              Comment


                #8
                Originally posted by funkyd
                Not really fussed - can easily get another contract for more money
                That is good, if your current lot think that (a) there's no work for you to do, and (b) they can get it cheaper.

                Maybe get a written reference from them before it goes tits-up, because you know whose fault it will be then?

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                  #9
                  Originally posted by expat
                  Maybe get a written reference from them before it goes tits-up, because you know whose fault it will be then?
                  That is my main fear. I don't want to get the blame. The risk of something getting overlooked that the outsource setup blames on me when things go wrong is quite high.

                  I personally dont think an outsource solution will suit the senior staff - if they want support and they want it NOW. They will not put up with some remote helpdesk person telling them the SLA is a 2 hour response......

                  Comment


                    #10
                    Funkyd - Outsourcing Consultant!

                    You should be charging more to outsource the IT Support for your customer.

                    Explain to the agency that their customer is asking you to do work that you are not contracted to provide, and that you are not prepared to do unless it is at a higher rate. IBM would charge £1500+ /day for outsourcing consultancy. Tell your agency you'll do it for £400/day!

                    Don't search for an outsourcer until you have:

                    1) worked out the minimum time you think you will have to work with the outsourcer to handover your knowledge and agree this with the IT Manager.

                    2) developed a set of supplier selection criteria with the IT Manager
                    (one of these should be a contractural commitment to hire you for the time you've worked out as above - I would get them to hire you through your agency.)

                    All the outourcers then have to carry the same cost to obtain the business, and your customer is assured that your time is available to the outsourcer if they want to use you. (They probably won't! They will probably come in, rubbish all your work and charge the customer a fortune to 'do it properly'! With any luck the IT Manager will cop some flack for not seeing that it was all rubbish!)

                    I wouldn't try to get any comercial gain out of introducing the outsourcer other than an period of guaranteed work.

                    I wouldn't like to be in your situation - Good Luck

                    tp

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