Contractor Says Billions Could Be Saved By Switching Outsourcing

A contractor claims savings of up to £2.9 billion could be made by housing associations, ALMOS and councils if changes were made to the outsourcing of housing maintenance and management. In a report, Tougher Times, Smarter Ways, Morrison has called on housing providers to switch to a ‘transformational’ model of outsourcing which, it claims, could see savings rise to 20 – 35 per cent compared with working in-house. The company says that currently providers with a traditional outsourcing contract have savings of 10 - 15 per cent and those with collaborative outsourcing contracts make savings of 15 – 25 per cent. According to Morrison ‘traditional’ outsourcing involves the provider undertaking activities prescribed by the client with costing done per activity and with a contract lasting three to five years. Download a copy of the report from the Inside Housing website.