Feeds

Insourced staff paid a pittance but don't want to leave

What's more important to you: cash or work/life balance?

Internet Security Threat Report 2014

After the scourge of outsourcing rampaged across the industry in the 1990s and 2000s, you'd think any news of insourcing would be good news for IT professionals, especially those who prefer to work in a nice, warm, in-house IT department rather than the measure-every-minute world of consultancy.

At Australia's Yarra Valley Water, where 35 folks found themselves in a new job, the news was mixed, because while jobs were created they weren't well paid. Yet the new workers don't want to leave.

IT operations manager Craig Linley told the insourcing tale at Gartner's IT Infrastructure Operations and Data Centre Summit in Sydney this week and explained the company decided to insource after being challenged to find ten to fifteen per cent of savings in the IT budget. The fact Yarra Valley Water did not really get on with its outsourcer helped: Linley said the un-named outfit dropped the ball during handover from the previous outsourcer and never quite managed to convincingly juggle it for years afterwards.

Linley knew he couldn't pay market rates for skilled staff. Government entities in Australia seldom do, with stability, generous retirement savings contributions and flexible working conditions the trade-off. Yarra Valley Water therefore pays fifty to seventy five per cent of the wage skilled folks can get elsewhere.

35 people were happy to work for those wages.

“We appeal to young families who are sick of the daily commute who want to live within an easy journey of their workplace,” Linley said. “We attracted good staff through work/life balance.”

In almost a year since, just two have left. One was a square peg. The other only departed for family reasons.

Linley, meanwhile, has proved that insourcing pays: operational and capital expenditure are both down. The fact that Yarra Valley Water already owned its own kit helped. He's also had to remember that insourced staff take holidays and that time off means degraded capabilities. But that hassle is tolerable given measurement of users' attitudes to IT show vastly greater satisfaction levels and trust.

That's good news for Yarra Valley Water's IT department. Is it also good news for it's IT workers? Or for the folks at the outsourcer who may well have found themselves without a gig, either immediately or perhaps at all if outsourcing needs to go offshore to meet the price insourcing can achieve?

We'll leave those choices to you, dear readers. Do let us know if you value the folding stuff or a warm fuzzy feeling in the comments or here. ®

Beginner's guide to SSL certificates

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Want to break Netflix? It'll pay you to do the job
'Senior Chaos Engineer' sought to inflict all sorts of nasty, nasty, pain
HOT BABES! Worried you won't get that JOB in IT? MENTION how hot you are
'Don't hate me 'cos I'm beautiful' ploy for sad honeys
Oracle to DBAs: your certification is about to become worthless paper
So hurry up and get a new one, will all of you who took exams for 10g and lower?
HP's axe swings AGAIN: 5,000 more staffers for the chop
Extra job cuts not linked to PC and printer biz split
Phones 4u demise: 1,700 employees laid off with redundo package
'Limited interest in remaining 362 stores', says administrator PwC
Germany strikes again over Amazon warehouse pay
Employees to walk out in long-running wage dispute
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.