The Olympics is sadly coming to an end, although after the rich pageant London has seen I can eagerly look forward to the Paralympics. As the dust settles on the games it will also settle on the G4S headlines. As I post this, G4S has just met the security staff numbers required of it as
LOCOG initially estimated around 2000 staff for the job. These
The story highlights a typical issue with the current outsourcing climate. The customer-supplier relationship is not always one of common sense; and the more political the customer's position, the less common sense matters. Demands, pressure from ministers, questions in
Outsourcing contractors are paid for a reason: They know how to run complex operations efficiently and professionally. But ignoring the capabilities of your supplier and the market can create unmanageable risk and the probability of failure. It is not enough to step back from these risks and blame the supplier. Customers need strong internal governance to ensure their requirements remain feasible, manageable and good value. Whatever the ins and outs of this particular story, it is LOCOG who came close to failing in its core objectives here, and not every customer can call in the army.
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