Outsourcing, like spending, will more than likely always be an area that comes under scrutiny in the public sector. But with increasing areas of the public sector now being outsourced, it is probably no surprise that the question on everyone’s lips is – how to get the best out of this strategy?

It is understandable in the current climate, that public sector organisations have increased pressure to make this strategy work for them financially. There has been an intense focus on cutting costs for some time now and amongst other issues, this has led to strained relationships with suppliers as CPOs battle with limited access to cash flow. Pressure is on the public sector to adhere to budgets whilst maintaining service levels and with outsourcing’s biggest advantage being that it saves money it is a welcomed strategy by most.

But these reduced budgets don’t reflect in the expectations of quality or quantity required from outsourced services, which remain at times, unrealistically high. There is a tendency, which has been driven by cuts and budget limitations, for the public sector to need everything for the lowest price possible and this can lead to a juggling act between service levels and cost.

The potential issues this creates here, are self-explanatory. ‘You get what you pay for’ is a well-recognised motto in the private sector, but when it comes to the public sector it holds less weight. It appears that in the public sector there is an expectation to get ‘more for less’ and you’ve got to wonder why this is. Perhaps there is an underlying feeling that good will should come into play, but realistically this is just not the case. If you want a better service levels then you must pay a better price, regardless of what sector you’re buying for.

This being said, it is important for the public sector to follow careful steps in order to avoid dips in service levels and get the most out of their strategies. With careful planning, risk analysis and a considered approach to funding barriers better outsourcing results can be attained. Furthermore it is important for the public sector to be realistic about what the budget will afford them