UK 07:52 Tuesday, 6 October 2026
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
“The first six months of this year have not been without challenge, but it is important to remember how much this young and fast growing firm has achieved in the same time” – so says Ken Olisa OBE, the chairman of Outsourcery (OUT) the IT firm run by Dragon’s Den star and serial business failure Piers Linney. Yes Ken – those who backed the AOM Casino IPO in May 2013 have now lost 84% of their dosh with the shares at 16p. You have achieved great things. How about you arrogant fuckers just say sorry for once. You screwed up. Show some humility.
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Comments
KelvinPrescott
The problem for Outsourcery, and any technology company entering into the cloud service provision market, is that there is already massive overcapacity.
That’s the fundamental flaw in the business model for Outsourcery, and the reason why its unlikely to ever earn a reasonable return on capital.
Just take one part of its business with which I’m personally familiar – public sector cloud services. Although in theory public bodies intend to move to cloud provision and they have a target of placing of such work with the public sector (though its not 50% as per their website); in practice the majority of customers already have huge sunk investments in their existing data centres. They will choose to install services on their own premises (or with their existing systems integrators, who are Outsourcery’s direct competitors). This is a commodity business. No newcomer will be able to compete unless they have deep enough pockets to build on a massive scale and play a long waiting game.
As long as they focus on cloud service provision and hosting, they will burn cash hoping that the market will turn in their favour. It won’t