Higher insurance ‘could fuel an increase in outsourcing’
3 April 2012
Purchasers could have to deal with an increase in outsourcing after Gordon Brown, chancellor of the exchequer, announced a 1 per cent rise in national insurance (NI) contributions in last week’s budget.
Damon Jones, global vice-president of new ventures and outsourcing at the QP Group consultancy, said the rise would tip the scales in favour of outsourcing for many firms.
He said procurement departments themselves could be threatened as companies attempt to fend off the extra cost of employing staff.
“The NI increase is a big tax for many companies,” he...