Public Services Outsourcing

Public Services Outsourcing

Given 35 years of both private and public sector experience, I am very cautious of embracing outsourcing as a panacea for reducing costs and increasing performance in public services. As experience has shown, when governments outsource public works to the private sector in key areas of infrastructure such as public transport, electricity and other public utilities, the results are almost standard. Performance decreases and costs increase. Basically this is due to the difference in culture - Private enterprises id financially driven to make a profit, whereas, the public sector in the main is a normative based environment whose business is to provide a certain level of service in return for taxes imposed. Once the two areas are mixed, the result generally ends up the same - Reduced services for the public as the private operator plays catch-up in service standards, increased costs, and infrastructure.

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		1 Ted Garrison Management Consultant, United States
	Outsourcing in Public Sector I'm not presumptuous to disagree with Shane, because in Australia it may be different. US government... Sign up

		0 Oscar Umeh Strategy Consultant, Nigeria
	Public Service Outsourcing Shane, you are correct, outsourcing public work from the public to the private sector rapes the enti... Sign up

		0 Borje Vickberg, Sweden
	Outsourcing Services to Public Sector There is an almost religious perspective of ones view on these matters. Either you are "pro" or "con... Sign up

		0 D P BABU Strategy Consultant, India
	Outsourcing Public Services Your anwer on this question depends on the evolution of societies, culture and economy of the countr... Sign up