HSBC bans its consultancies from supplying limited company contractors

[NotAllThere]

"skilled people". Not cheap as chips robots. People who can think for themselves and specialize in something

Sadly, the people who make decisions about outsourcing consider IT workers to be all of equal value. They also fail to understand that if someone on £800 a day fixes an issue in one hour, that's cheaper than someone on £80 a day fixing the issue in 2 days.

[BrilloPad]

Sadly, the people who make decisions about outsourcing consider IT workers to be all of equal value. They also fail to understand that if someone on £800 a day fixes an issue in one hour, that's cheaper than someone on £80 a day fixing the issue in 2 days.

Every year I have seen the quality of the off-shored people increase. One reason why I am pleased I moved from a bank to a software house. Instead of a cost centre I am a profit centre.

[GhostofTarbera]

Probably sees them a tax dodgers

Probably right


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[krytonsheep]

HSBC move will backfire.

Absolutely. It's basic math. If they have a product / service that is going to make xx million a year. Not hiring the best people is going cost them x million a month because they can't get the thing out of the door on time.

As the author Jim Collins of Good to Great says "First, get the right people on the bus".

You will still get good permies, but contractors tend to be on another level because they haven't had the life sucked out of them by the corporate bulltulip.

[ladymuck]

There are probably too many permanent contractors there who are fully embedded in the organisation and they have been allowed to stay because the lack of head count looks good on the books.

Perhaps a shake up of resourcing will be good for the bank, as permies who've relied on contractors to cover up their ineptitude will be exposed. (I hear this is happening at Gatwick)

What I don't like is the message this approach gives both the market and HMRC.

Yes, take the forthcoming change and use it to positively influence how you operate your organisation. No, don't deliver HMRC's propaganda to them on a silver platter.

[Paralytic]

And this is true. I'm yet to find a single poster on here who isn't an average joe waster coasting in his overpaid cushy role which has always been inside IR35 (not that you'll ever admit it because you work from home on a Tuesday). Well, they've finally caught up with you.

I did forget to thank you for that time you spent reviewing my working practices with my client. So, thank-you. Where do I send the invoice? The IR35 determination based on that work will be in the post.

[Snooky]

The view from HSBC directors(via a friend) is that the contractors are overpaid

I couldn't agree more with those directors, making ends meet on their annual packages of £3-6m.

Greedy, greedy contractors

[ChrisHadfield]

Who profits from these changes at HSBC?

[GhostofTarbera]

Who profits from these changes at HSBC?

EY the people who suggested them


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[Paralytic]

Who profits from these changes at HSBC?

I'm not sure this is about profit, but instead it is about risk. If HSBC go to MyLittleAgency and to get a resources, and that person is paid via a PSC, HSBC have to make the determination. They don't want to make determinations. It confuses their HR department and makes their legal department worry. They just want a temporary employee they can tell what to do.