Bournemouth Borough Council Fears Outsourcing
Bournemouth Borough Council has insisted that its relationship with third-party provider
Mouchel remains completely unaffected by the firms recent problems.A 4m accounting error wiped one-third off Mouchels share price and forced the Chief Executive, Richard Cuthbert, to resign but Cllr John Beesley, the Deputy Leader of the Tory-run local authority, told the Bournemouth Echo that public services would not be impacted.
The contract with Mouchel is one that prepares for every eventuality and if something happens with Mouchel, for example theyre taken over, were very clear about the continuity of service provision, he said. As far as were concerned our relationship with Mouchel is business as usual.
While Cllr Beesley insisted Mouchels recent difficulties were primarily a matter for the companys shareholders and directors, he insisted that the council has a range of options at its disposal should its troubles persist. Bournemouth Council signed a 150m deal with Mouchel to take over the management of four departments last November.
Last week, National Outsourcing Association board member Paul Robb told an event organised by Public Finance and Civica that a clear set of objectives must be established at the outset of any third-party agreement with public sector bodies.
Not only this, but its a good idea for clear objectives to be established when any third party agreement is struck up, in any industry, to ensure both sides are working towards the same aim.
Mouchel is a consulting and business services group, providing many services for many design and managerial services present in todays society. Working with government, local authorities, and many private sector organisations, Mouchel has struck up impressive relationships with its clients and therefore stands strong in its industry.
The recent error in profit has shaken the company somewhat, and with three other suppliers to the public sector closing their doors for the final time over the past year or so, the question asked is will Mouchel survive this potentially-ruining error?
With recent cutbacks also affecting Mouchel and the way it operates, things definitely look bleak for the company at the moment, and money is surely in need of being saved if theyre going to come through this.
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