A scheme to reduce government expenditure by outsourcing back-office functions has cost taxpayers more money than it has saved, MPs have said. Officials had hoped the programme could save up to £400m a year, but after two-and-a-half years of operation the scheme has saved £90m while costing £94m. The two shared service centres are run by Arvato UK and Shared Services Connected and it had been planned that 26 different organisations would use them to provide back-office functions to cut costs. But just two of the 26 organisations had signed up and officials now estimate the centres will deliver total savings of £484m by 2023-24. The result has been a net cost to taxpayers and a significant scaling back of ambition for the savings likely to be achieved in the years ahead.

Source: The Guardian October 18, 2016 22:52 UTC