A damming new report from the National Audit Office has proven that outsourcing of services is not only bad value for money but also increasingly incapable of delivering on targets.
Capita was awarded a £495 million contract in 2012, but after a series of failings the audit has revealed that they failed to meet recruitment targets every year since. When put into numbers, the statistics are deeply embarassing as the NAO has revealed that the shortfall in army recruitment varied from between 21% and 45%.
Outsourcing is an essential component of neoliberalism and has time and time again proven to be an unsuccessful means of delivering public services.
The report was sceptical of almost every element of Capita’s recrutiment process, saying that it took almost 321 days from a potential employee starting their application to beginning training, by which point the report found that many had dropped out.
This latest embarassment for the Government comes after Carillion collapsed earlier in the year and shows there is a fundamental flaw in the ideology of outsourcing.