Public Services Outsourcing

Outsourcing
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Best Practices
Shane Milroy, Australia

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.

  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 makes it more expen...

  Oscar Umeh
Strategy Consultant, Nigeria
 

Public Service Outsourcing

Shane, you are correct, outsourcing public work from the public to the private sector rapes the entire value creation be...

  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" and whatever your ...

  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 country/province leading t...

 

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