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Sign Of The Times: Serco Asked Suppliers For 2.5% Cash Rebate


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HOLA441

Now here is one business that could be on for a tough time.

http://www.telegraph.co.uk/finance/yourbusiness/8101899/Serco-retracts-cash-rebate-demand.html

Now its one thing to try and reduce existing contracts, but this action looks like it was retrospective. My understanding of Serco's business model is that they operate on tight margins on very large contracts. Clearly with the Government slashing 10, 20, 30%, its going to be tough and this move (now retracted) seems to evidence that.

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HOLA442

Now here is one business that could be on for a tough time.

http://www.telegraph.co.uk/finance/yourbusiness/8101899/Serco-retracts-cash-rebate-demand.html

Now its one thing to try and reduce existing contracts, but this action looks like it was retrospective. My understanding of Serco's business model is that they operate on tight margins on very large contracts. Clearly with the Government slashing 10, 20, 30%, its going to be tough and this move (now retracted) seems to evidence that.

Ah Serco who ran the Manchester metrolink and nearly ran it into the ground even with excessive fares? Heh they skimped so much on the maintenance that the metrolink derailed and went past the wear limits everywhere. Hell the ride from Bury to Whitefield was like riding over speed humps it was so rough due to cutting corners and having surly and racist ticket inspectors.

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HOLA443

Now here is one business that could be on for a tough time.

http://www.telegraph.co.uk/finance/yourbusiness/8101899/Serco-retracts-cash-rebate-demand.html

Now its one thing to try and reduce existing contracts, but this action looks like it was retrospective. My understanding of Serco's business model is that they operate on tight margins on very large contracts. Clearly with the Government slashing 10, 20, 30%, its going to be tough and this move (now retracted) seems to evidence that.

Reading the article, seemed like a thinly veiled and nasty threat to its suppliers.

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HOLA444
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HOLA445
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HOLA446

Ah Serco who ran the Manchester metrolink and nearly ran it into the ground even with excessive fares? Heh they skimped so much on the maintenance that the metrolink derailed and went past the wear limits everywhere. Hell the ride from Bury to Whitefield was like riding over speed humps it was so rough due to cutting corners and having surly and racist ticket inspectors.

Thought you were referring to a girl I once knew :P

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HOLA447

Reading the article, seemed like a thinly veiled and nasty threat to its suppliers.

Also a suggestion that it was equivalent to soliciting bribes in the comments, which is would say is a fair point.

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HOLA448
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HOLA449

Now here is one business that could be on for a tough time.

http://www.telegraph.co.uk/finance/yourbusiness/8101899/Serco-retracts-cash-rebate-demand.html

Now its one thing to try and reduce existing contracts, but this action looks like it was retrospective. My understanding of Serco's business model is that they operate on tight margins on very large contracts. Clearly with the Government slashing 10, 20, 30%, its going to be tough and this move (now retracted) seems to evidence that.

My experience of Serco is that they operate on much bigger margins than they tell you. They'll lie to both clients and employees in pursuit of those margins.

Example: contracting a software developer to JRC in Italy, about 1993. They paid him £14k but specified in the contract that they were paying £17k. Came to light 'cos the programmer and the client touched upon the subject in casual conversation.

I could tell of much bigger discrepancies than that, if I were to recall my own experience.

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