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Outsourcing: from private to public procurement

The application of outsourcing in the public sector is growing support. This application relates to the assignment of the exercise of public activities, administrative functions, public or instrumental activities, creation or management of public goods, to parties other than the government. Outsourcing constitutes a useful tool for finding and deliver benefits to which the administrations, due to the shortage of suitable facilities, transport or professionalism, are not in conditions to provide entirely. Also for reasons of cost.

Outsourcing: the origins

The term Outsourcing means the decision to entrust, by companies, even partially, to an external provider, functions and activities, from public or private entities. It is about operation contract be placed in a special category of non-standard contracts of various and diverse content. It not always characterized by a defined legal framework.

The outsourcing of activities, functions and services is predominantly private-emerged in practice. Since the eighties of last century has seen, especially in the US, to its diffusion within the private sector. In order to cope effectively periods of crisis by reducing costs and optimizing the available resources.

The phenomenon originates and develops, therefore, as part of the commercial practice in the private sector. Staying her discipline, in our system, in the field of atypical contracts, framed as an evolution of facility management.

The outsourcing contract, in his private law enforcement, had spread in areas considered important to the operation of the company and internal processes to it. Not constituents, however, the core business of the industry in which it operates. It is, therefore, of “strategic” assets, but not crucial, and “non-strategic” too costly to be managed profitably within the company itself.

Outsourcing in  public sector

Outsourcing implementation in the public sector is also increasingly statement.

Incentives implementation of outsourcing are already found in the Finance Act 2002 (Law 28 December 2001 n. 448). In particular, among others, in articles. 24, 29 and 32, which promote the realization of cost savings and improve operating efficiency.

The advantages of Outsourcing optimize the use of financial and human resources, making more rapid delivery of services and information. Outsourcing is, ultimately, a good opportunity for modernization and a more effective response to the demand for citizen services.

A first allocation classificatory outsourcing in the public occurs between total outsourcing, if it relates to individual services or specific areas of internal support activities, and partial outsourcing, where specific stages of complex activities are subject to external procurement.

It then outlines a distinction in the order of legal instrument employed. The reciprocal contract (which the contract), the typical contract (as the global service) or its associated contract(joint stock companies, joint ventures, consortia, joint ventures).

Additional classification is found in outsourcing based on an expansion of functions.That is an outsourcing motivated by a desired production rationalization, not unlike private companies, identifying areas suitable to be entrusted to third parties.

Outsourcing: application methods

appropriate to cite Finally different application modes: outsourcing can be realized forming companies or agencies in whole or in part public entrust specific tasks and functions. Coordinates by the transferor or by funding a full outsourcing of activities and functions delegated to a private entity to carry them out. Without, therefore, a direct operational involvement by the public administration.

A survey conducted recently has revealed that some public functions can be successfully outsourced with the following benefits:

  • streamlining administration activities
  • a more careful allocation of resources by concentrating on strategic objectives
  • better control over complex management processes
  • faster modernization of internal structures.

Research has also highlighted the undeniable advantages for end users. First and foremost, greater speed, efficiency and scalability of performance that characterize the services rendered in outsourcing.

For more information, contact now our professionals.

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