Is outsourcing the cause of RBS debacle?

[eek]

But outsourcing looks great for the UK Managers who can now put a definite £ amount on the projects they're (mis)managing.

"Managed UK rollout of sharepoint "

becomes

"Negotiated and managed a £3million global sharepoint impletementation."

Which only works because people look at the big number of think oh thats a big serious project.

Meanwhile we look at that and think £3m for a job we could do in a very leisurely 6 months with £50k in licence fees to Microsoft. They were robbed.

[Basil Fawlty]

Pretty sure our onshore Bobs are responsible for the increased number of broken toilet seats at current clientco's office as well.

I bet the cost of replacing these is never included in the true figures...

[original PM]

Pretty sure our onshore Bobs are responsible for the increased number of broken toilet seats at current clientco's office as well.

I bet the cost of replacing these is never included in the true figures...

I have noticed that as well - is it some sort of national sport for them??

[Scoobos]

What's your point though? It's still being productive in the UK.

It's leaking money out of our economy, not creating it, you idjit.

It's also in the way of ICT, a free pass by immigration and a zero tax liability situation. Totally open to abuse and the politicians will try and play the same card these joker MD's are - "well GDP is up!, sod the fact that job opportunities and income for our electorate is down"

[Robinho]

It's leaking money out of our economy, not creating it, you idjit.

I'm not the idjit who doesn't realise you can only spend Pound Sterling in the UK.

[Scoobos]

I'm not the idjit who doesn't realise you can only spend Pound Sterling in the UK.

lol, are you for real?

How can someone who claims to know so much about economics that you can go into the mechanics of capital and then try and paint that somehow we live in the 1800's with no currency market.

Any money that leaves the economy that is not spent in it is leaked. Savings are one thing, but at least they are temporary - farming our work overseas also commits to leaking money overseas in payments to foreign nationals.

ICT workers are generally paid in their home currency anyway, so the point is moot.

Or are you saying the 5% a bank might make on currency conversion (probably foreign owned again, by majority shareholders outside the UK) is somehow worth the 95% of our income we lose?

Or am I seriously just stupid and in need of re-education? I think this is a basic element of modern macro-economics (I did go to a poly)

We are selling our monetary power down the river for short term profits that are not even being distributed in most cases to UK nationals.

[Robinho]

Comparative advantage - Wikipedia, the free encyclopedia

[Scoobos]

huh, is that relevant - its back to the 1800's again - this is intentional isnt it?

Wkipedia is just concensus, don't forget that

Quoting your OWN link though:

"Conditions that maximize comparative advantage do not automatically resolve trade deficits. In fact, many real world examples where comparative advantage is attainable may require a trade deficit. For example, the amount of goods produced can be maximized, yet it may involve a net transfer of wealth from one country to the other, often because economic agents have widely different rates of saving."

This is also an old theory which could be argued to be outdated due to the freedom of movement for world labour that we didn't see before.

If you are paying foreign nationals you are giving your economy's money away.

In the words of Red Dragon "dooo you seeeeeee?"

[Robinho]

If bobs have a comparative advantage over us then we should let them do the IT stuff, meanwhile we focus on another skill where we have a comparative advatage. This way people are better allocated to their skill and the world is a more efficient place meaning everyone benefits.

Life is not a zero sum game.

Again, because you cannot spend Pound Sterling abroad we are not "giving our money away" we are weakening the pound (which simply boosts exports).

[Scoobos]

I disagree completely..

Money leaking your economy is not a good thing.

Using a wiki link , follow through this - take note of how most people used to measure performance (e.g not solely on GDP) also how money injected into an economy promote growth and money removed promotes shrinkage.

Macroeconomics - Wikipedia, the free encyclopedia

Now I know that people argue about the semantics of Keynesian Macroeconomics, and its old, but at least its not ruddy 1800's stuff.