Soaring consultant costs cancel out public service salary savings

The money federal government departments are saving through job cuts is being cancelled out by a massive increase in the costs of high-paid consultants and contractors.

    It's a classic false economy.
    Michael Tull, Community and Public Sector Union

The 18 major Commonwealth departments reduced their wages bill by $109 million last financial year, according to Fairfax Media analysis of their recently released annual reports.


But consultant and contractor costs increased by a whopping $205 million – almost double the money saved. The increase took the departments' total consultant and contractor bills for 2014-15 to a little over $1 billion.
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Thirteen of the 18 departments recorded an increase in outsourcing costs.

About half of the overall increase can be attributed to a $100 million Department of Human Services contract to update its creaking computer system. The department also increased its wage bill by $16 million.

Five other departments – Treasury, Finance, Social Services, Immigration and Infrastructure – saved on wages but had their savings outstripped by rising outsourcing fees.

Together, they saved $53 million on wages, but spent an extra $81 million on consultants and contractors.

The 18 departments also spent $78 million on redundancy packages during the year.

These figures refer only to the umbrella departments themselves, not the 90-plus other agencies under their purview.

The figures also do not take superannuation or leave costs into account.

An estimated 15,000 public servants lost their jobs under Tony Abbott's short-lived government. But the new figures suggest the downsizing did not necessarily help the budget bottom line.

They also add to the debate about the increasing outsourcing of public service duties, which some believe has left the bureaucracy bereft of the in-house experience it needs to function properly.

The Community and Public Sector Union's assistant national secretary, Michael Tull​, said the public sector had been "cut to the bone".

"That's why 26 million calls to the Department of Human Services went unanswered last year, why the Australian Tax Office doesn't chase more multinational tax avoiders, and why the CSIRO stopped research into Alzheimer's disease," he said.

"Arbitrary budget cuts force departments to use contractors and consultants to replace workers who should not have been made redundant in the first place. It's a classic false economy."

The government's "growing addiction" to multinational consulting firms also raised questions about how much influence big corporate interests had over policy development, he said.

Read more: http://www.smh.com.au/federal-politics/political-news/soaring-consultant-costs-cancel-out-public-service-salary-savings-20151127-gla53b.html

Most Corridor superintendents allowed to do consulting

CEDAR RAPIDS — Cedar Rapids Community Schools Superintendent Brad Buck, hired in March, already has turned down two requests to work for pay outside the district. He’s been too busy learning about the district of more than 16,000 students, meeting teachers and principals and getting reacquainted with his hometown.

But when Viterbo University, based in Wisconsin with satellites in Iowa, approached him about teaching an introductory course for principals, Buck couldn’t refuse.

“At my heart, I’m still a teacher,” said Buck who started his career as a middle school science teacher. “I’ll likely end up teaching a course this summer. I’ll take paid time off if I need to.”

School officials in Iowa and across the country are moonlighting for educational companies, universities and professional organizations. These opportunities can help administrators hone their skills and promote home districts — but they also can lead to potential conflicts of interest.

“It’s not just about the extra money you’re making on the side,” said Samuel Abrams, director of the National Center for the Study of Privatization in Education at Columbia University.

“The superintendents are making money from counseling other school districts about getting scores up. They’re consequently that much less likely to criticize an accountability system that should be criticized.”

The Iowa City school board on Tuesday will discuss Superintendent Stephen Murley’s discretionary leave — 10 days he may use for consulting or other professional activities.

Murley moonlighted from 2012 to 2014 for the SUPES Academy, a Chicago-area private educational company indicted in a kickback scandal in the Chicago Public Schools. Murley has said he and other superintendents had no knowledge of the scheme.

The Iowa City school board released records this past week showing Murley received permission to work 13 days out of the district in 2015-2016 for two for-profit companies and an education association. His compensation for these groups, if he worked eight-hour days, would be about $3,600.

A Gazette review of five Corridor school districts shows all allow superintendents to do outside work as long as it doesn’t interfere with their day jobs.

“If John wants to take his vacation do consult, he can do that,” Steve Doser, spokesman for the College Community School District, said of Superintendent John Speer.

Speer must seek prior approval from the school board for outside consulting or professional activities unless he uses vacation. Speer, hired in 2012 and paid $194,040 this year, is entitled to 20 vacation days, according to his contract.

He has never asked the board for time to do outside work, Doser said.
Discretionary leave

The Clear Creek-Amana Community School District allows superintendents to accept consulting work or other outside employment as long as it’s on the superintendent’s own time. The school board does not require the superintendent to report outside work, but reserves the right to ask the leader to stop side jobs.

“I’m confident that if something like this came up, the superintendent would talk with us about it,” School Board President Steve Swenka said about Superintendent Tim Kuehl, hired in April 2013.

After working 9 to 5 and then attending evening student events, many superintendents don’t have extra time for consulting work, Swenka said. Area superintendents are paid well enough not to need extra income, he added.

Kuehl’s salary is $164,798.

Linn-Mar’s contract with Superintendent Quintin Shepherd, hired last December, allows him to consult, lecture and engage in speaking and writing activities that don’t impede his job. If Shepherd, with an annual salary of $215,000, wants to be paid for outside work, he must get prior written approval.

read more: http://www.thegazette.com/subject/news/education/k-12-education/most-corridor-superintendents-allowed-to-do-consulting-20151122

Enterprise Strategies Announces Formal UK and Central European Expansion With Strategic Hire

LONDON, UNITED KINGDOM--(Marketwired - November 17, 2015) - Enterprise Strategies, a consultancy committed to Delivering the Future of Work℠ through practical digital strategies and adoption programs, today announced the hiring of Lesley Crook as their Internal Digital Strategy Advisor. In this role, Lesley will work directly with Enterprise Strategies's clients in the United Kingdom and Central Europe provide local support for internal digital strategy and enterprise social network adoption initiatives.

Lesley brings over 15 years of internal communications and employee engagement experience to the Enterprise Strategies team. She is the founder of Working Out Loud in a Network "#wolan" helping organizations embrace the business value of enterprise social networks. The #wolan framework demonstrates how enterprise social networks can be aligned to strategy, share tacit knowledge, demonstrate the right cultural behaviors/values and introduces the relevance of using "business intelligent" hashtags. The emerging #wolan framework convinced the GSK German Works Council to use Yammer. #wolan has been endorsed by the Digital Workplace Group, Oxford University social academics and Microsoft.

"I am excited to welcome Lesley Crook to our fast expanding team," Enterprise Strategies Managing Director and Founder Andy Jankowski said. "She is a passionate and experienced internal communications professional with knowledge, insights and personal successes in driving the adoption and business value internal social networks such as Yammer. I look forward to working with Lesley to continue to provide world class #futureofwork solutions to our current and future United Kingdom and Central European clients."

Prior to creating #wolan, Lesley was an Internal Digital Communications Manager for GlaxoSmithKline, where she inspired employees to use Yammer to improve employee empowerment and engagement. Working in a mutually successful Internal communication and IT partnership, Lesley helped launch and adopt the company's Yammer strategy. She also led many other GSK internal communication digital channel programs, supported the GSK Brand team, led GSK's Yammer adoption and facilitated their monthly SharePoint governance board.

Lesley's GSK lean sigma/ESN #wolan approach can be found at http://enterprisestrategies.com/2015/11/16/demonstrating-yammers-business-value/.

She was recently interviewed regarding #wolan in advance of International Working Out Loud Week (Nov. 16-20). A transcript of two interviews can be found at https://wolweek.wordpress.com/2015/10/22/working-out-loud-in-a-network-interview-with-lesley-crook/.

Lesley is a GSK Lean Sigma green belt practitioner, and earned a diploma with the Chartered Institute of Public Relations (CIPR UK).

Lesley volunteers on the International Association of Business Communicators (IABC-UK) Chapter Board, and is an Enactus Business Advisor at Brighton University. She works and resides in Brighton, UK with her husband Steve and two terrier dogs.

source: http://www.marketwired.com/press-release/addition-to-consulting-team-supports-rapid-international-growth-and-client-success-2074304.htm

Tasman Consulting Named Kennedy Vanguard Leader in New Report on Global HR Consulting in Corporate Transactions

SAN FRANCISCO, Nov. 10, 2015 /PRNewswire/ -- Silicon Valley-based Tasman Consulting LLC announced today that it has been recognized as a Kennedy Vanguard Leader in a new report on HR Consulting in Corporate Transactions by Kennedy, the leading consulting research and advisory firm. This new report introduces Tasman as a leader among global HR M&A consulting firms for the first year since its 2011 launch, and one of just six Vanguard Leaders in 2015.

Tasman Consulting's customized approach for clients helped lift their ranking to the top of the charts against the Big Four consulting firms.  Identifying the firm as exemplary for the delivery of a seamless end-to-end M&A experience for their clients, the report lauded Tasman for its hands-on approach as well as for its hiring of senior talent with deep industry experience.

Tasman is a women-owned small business that has been in operation for five years. Shari Yocum & Niki Lee, Managing Partners of Tasman Consulting LLC, said: "We are honored to be recognized for the first time in Kennedy's Vanguard for HR Consulting. Moreover, the identification as one of only six Vanguard leaders in a global comparison is without a doubt a result of the experience and customized end-to-end, flexible service we provide each client."

Tasman's senior level team members have 10+ years' experience in corporate M&A and have completed a number of due diligence projects for Fortune 500 clients. They all have in-depth knowledge of HR operations and services as well as organizational change expertise.  Most importantly, Tasman's consultants operate as a true extension to their client's HR and Corporate Development teams, providing services as needed and strategic guidance for the most complex deals.

Shari Yocum is quoted in the report on the issue of culture, an area in which Tasman has continued to expand new offerings and provide thought leadership.

Yocum brings nearly twenty years of experience working in global firms, along the way becoming an industry leader in HR, M&A, change management and process re-engineering.  She has held various HR executive and consulting roles at Cisco, PricewaterhouseCoopers, Nortel and MSA, and holds a Master of Business Administration from Duke University's Fuqua School of Business.

Prior to co-founding Tasman, Lee led Cisco's HR Mergers and Acquisitions organization. Over the past 15 years, Lee has managed more than 60 domestic and cross-border acquisitions. Both Yocum and Lee publish and are interviewed regularly on the subject.

see more: http://www.prnewswire.com/news-releases/tasman-consulting-named-kennedy-vanguard-leader-in-new-report-on-global-hr-consulting-in-corporate-transactions-300175731.html

Virtusa Announces Definitive Agreement to Acquire a Majority Interest in Polaris Consulting & Services, Ltd.

WESTBOROUGH, Mass.--(BUSINESS WIRE)--Virtusa Corporation (NASDAQ GS:VRTU), a global business consulting and IT outsourcing company that combines innovation, technology leadership and industry solutions to transform the customer experience, today announced that it has entered into a definitive agreement to acquire a majority interest in Polaris Consulting & Services, Ltd. (“Polaris”) (BSE: POLARIS NSE: POLARIS MSEI: POLARIS), a global provider of IT solutions primarily to the banking and financial services industry segment, for approximately $270 million. The transaction consideration includes both the 51.7% majority interest and an unconditional mandatory open offer to purchase up to 26%(3) of the outstanding shares of Polaris from the public shareholders of Polaris (as further described below in “Terms and Financing of the Polaris Transaction”). In addition, upon closing of the Polaris transaction, Citigroup Technology Group, Inc. (“Citi”) has agreed to designate Virtusa and Polaris as a preferred vendor for Global Technology Resource Strategy (“GTRS”) for the provision of IT services to Citi on an enterprise-wide basis.

    “Virtusa and Polaris share a common goal of delivering best-in-class solutions and the highest level of service excellence to our clients. I believe the combination of the two companies will enable us to better address our clients’ most critical business objectives.”
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As of September 30, 2015, Chennai, India-based Polaris had approximately 7,650(1) employees, serving its global client base through 12 development centers. For the six months ended September 30, 2015, Polaris generated total pro forma revenue(2) of approximately $150 million. Polaris had cash, cash equivalents, and short-term and long-term investments of approximately $44.8 million(4) as of September 30, 2015.

Upon the closing of the Polaris transaction, the combination of Virtusa and Polaris would create a leading global provider of IT services and solutions to the banking and financial services industry segment. The acquisition would combine Virtusa’s deep domain expertise in consumer and retail banking with Polaris’ proven strength in corporate and investment banking. This combination would provide an end-to-end portfolio of differentiated solutions to the global banking and financial services industry segment, improving the combined entity’s competitive position, and expanding its addressable market. Virtusa expects to realize over $100 million of cumulative revenue synergies over the next three fiscal years from the business combination.

The Polaris transaction is expected to close during Virtusa’s fourth fiscal quarter ending March 31, 2016. The closing of the definitive agreement and the unconditional mandatory open offer to purchase shares from the public shareholders of Polaris are each subject to customary conditions, including receipt of required regulatory approvals.

Commenting on the transaction, Kris Canekeratne, Virtusa’s Chairman and CEO, stated, “Polaris brings a terrific team and an attractive, blue-chip client base to our organization. The combination of Virtusa and Polaris will enable us to provide end-to-end global BFS services and solutions, expand our addressable market, and position us to pursue larger consulting and outsourcing opportunities. We are enthusiastic about working with the Polaris team to build out our platform and offer clients a distinctive set of offerings.”

Jitin Goyal, Chief Executive Officer & Executive Director of Polaris, said, “Virtusa and Polaris share a common goal of delivering best-in-class solutions and the highest level of service excellence to our clients. I believe the combination of the two companies will enable us to better address our clients’ most critical business objectives.”

Terms and Financing of the Polaris Transaction

Virtusa, through its India subsidiary, Virtusa Consulting Services Private Limited (“Virtusa India”), has entered into a definitive agreement to acquire all of the outstanding shares of Polaris held by Mr. Arun Jain, founder and chairman of Polaris, Orbitech Private Limited, and certain other minority stockholders, representing an aggregate of approximately 51.7%(5&6) of the fully diluted outstanding shares of Polaris for $3.38 per share (INR 220.73 per share) (7), for an aggregate purchase consideration under the definitive agreement of approximately $180 million (INR 11,728.08 million) (7).

In addition, in accordance with the requirements of the Indian securities regulator, the Securities and Exchange Board of India ("SEBI") and the applicable Indian rules on Takeovers, Virtusa India shall make an unconditional mandatory open offer to Polaris’ public shareholders to purchase up to an additional 26%(3) of the outstanding shares of Polaris. The aggregate price for the shares to be purchased in the unconditional, mandatory open offer, assuming full tender and the offer price remaining unchanged, is estimated at approximately $90 million (INR 5,877 million) (7).

read more: http://www.businesswire.com/news/home/20151105005759/en/Virtusa-Announces-Definitive-Agreement-Acquire-Majority-Interest

6 Steps to Getting Your First Consulting Contract

In 2014, companies spent $42.4 billion on training according to The Training Industry Report. After locked in an $80,000 consulting contract last week, I can attest to the fact that solopreneurs and lifestyle entrepreneurs have the opportunity to add significant income through paid consulting. The opportunity is there, you may just not have known how to find it.

Getting a company to hire you and give you a consulting contract may test the limits of your comfort zone. You wonder if you’re qualified to approach a company. When you think about the details, you get frustrated because you’re not sure how to build a consulting business.

My first business was a service company in the bread industry. My second business is a lifestyle business that involves a good deal of paid consulting with companies all over the world. How I book contracts is not a mystery and you probably have the skills and knowledge to land the deal. Here are six steps to building a lucrative and freedom based consulting business.
1. Make a list of your areas of expertise.

To get the contract, you have to understand what areas you could possible train on. Tap into your experiences to see what you enjoy and are knowledgeable about. Write those areas down somewhere. List as many as you can come up with.
2. Start with targeting companies where you live.

I have a consulting contract to train in six countries next year, but my first contract was in my former hometown of Milwaukee, Wisconsin (I now live on Maui). You want to start locally because there’s a good chance you have a connection with a local company. Also, you can show a local company that you’re part of the community and are committed to doing good work.

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3. Get a meeting with the owner or a decision maker.

Another reason to start local is that you have to talk to someone who can make the deal. Chances are you aren’t going to make deals with Fortune 500 companies when you start out, but you can get a consulting contract at a local restaurant or factory. After you’ve identified your areas of expertise, research nearby companies to determine which has a problem costing it money that you know how to solve. Tell the owner that you want to show them how they’re losing money. Ask for a quick 20-minute meeting over coffee.
4. Prove your fee is worth it to solve the problem.

When you get the meeting, show up and prove you know what you’re talking about. Your research is a big part of proving why you should get the contract. Don’t show up with a lot of promises but no content. This meeting is to prove you can help this company stop losing money. Prove it.

read more: http://www.entrepreneur.com/article/252026