Skip to main content

Offshoring Services

Volume 574: debated on Wednesday 29 January 2014

Our policy on offshoring is unchanged from that pursued by the previous Government. Our procurement policy is to award contracts on the basis of value for money, which means the optimum combination of costs and quality.

Cabinet Office document ISSC2 states that back-office jobs and functions in the Departments for Work and Pensions and for Environment, Food and Rural Affairs will be privatised and offshored in a joint venture with the Government and Steria UK. Which functions and jobs will be offshored and to where? Does he agree that any threat to offshore jobs, particularly those handling sensitive personal data, should be given urgent attention by the Government?

Concerns about data security are taken very seriously, and certainly inform our approach to offshoring. But as I say, the approach that we take to offshoring is exactly the same as that followed by the previous Government. The hon. Lady may know that the shared business services joint venture, also with Steria, which was set up by the last Government, has some elements that are offshored, and the same will be the case with this joint venture.

Will my right hon. Friend encourage contractors to recognise that where there is a very cost-effective office in a rural community providing shared services, such as the DEFRA office in Alnwick, retaining jobs there makes sense?

I know my right hon. Friend’s concern about that office and I know that Steria and the management of the shared services centre will be looking at that very carefully. They will want to make sure that the service is provided at an improved quality—the quality has not been optimal up to now—and at a much lower cost. There will be many different ways of doing that, but I know that they will want to look very carefully at the service provided by their colleagues at Alnwick.