At the now infamous 'Waffling NHS IT' analysts conference call (see posting of 6th April) CSC managed to get away without explaining how they were to exactly deal with downsizing and any resultant extra costs. Well what do you know? CSC is now talking about removing 300 people from the workforce just a few weeks after they said any people reductions would be dealt with by voluntary leavers and normal attrition. By saying this CSC must have either been knowingly misleading the analysts and investors, or grossly incompetent. Only time will tell which it was.
However, what we do know that along with the investors being hit in the pocket, many loyal staff who worked long hours, in some cases 60 to 70 hours a week for no extra reward, are to lose their jobs. Not surprisingly the employees are demonstrating in public about this. Read it here from The Register. Meanwhile the leadership who created this mess are still in place drawing large salaries, bonuses and perks. Indeed, they seem to be untouchable. Thus it seems like the scenario from the First World war when millions of men were sent ‘over the top’ to be slaughtered in their millions while senior officers sat in nice safe luxurious chateaus miles from the front being wined and dined. At that time ‘Lions Led By Donkeys’ was a term being used in the press. Although people are not dying we think this term is very appropriate for CSC.
One final comment of the redundancies: If 300 people at £30,000 each are to leave the bill to CSC is at least £9,000,000. This has to be added to the contract losses. Have they been booked yet? Note that as a result CSC will have thousands of square feet of empty offices and data centres to get rid of. Are these costs included in latest forecasts?
The other latest news about CSC in the UK is they have been granted a contract with Government’s Ministry of Defence. This is happening even though Prime Minister David Cameron said in Parliament and on TV for all to hear that CSC was not to be granted any new contracts as the company was not to be trusted. But now we read that CSC is to be awarded with defence personnel records management. Thankfully Mr Eric Bacon MP who sits on the Public Accounts Committee in Parliament is asking for this deal to be called in for review. But perhaps this new contract is a quid quo pro for loss of NHS. Let us wish Mr Bacon MP well in getting this deal quashed.
Other news of this contract, none of it is good, can be found here:
‘CSC Decision has shocked MPs’ http://www.cio.co.uk/news/3352633/cscs-mod-payroll-contract-may-provoke-industrial-action/?olo=rss
‘CSC wins MoD contract’ http://www.computing.co.uk/ctg/news/2168364/csc-wins-gbp400m-mod-payroll-administration-contract
‘CSC’s payroll contract may provoke industrial action’ http://www.computerworlduk.com/news/public-sector/3352622/cscs-mod-payroll-contract-may-provoke-industrial-action/