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Resources and News from the world of Outsourcing

Service outsourcing in public government

Due to the reorganization and modernization of public administration, in this field as well as in many other industries a growing trend of outsourcing specific functions and services came out. What is the purpose of this reorganization? Simple, the rationalization of economic and human resources that you have available, with the maintenance of qualitative standards.

Most commenters point out that outsourcing is not equivalent to an advantage in and of itself, and one must carefully assess the impact that moving to this organizational approach produces to the reality in question. What are the costs? What are the benefits? There should be reasons to prefer this new model rather than the proven one.

The process of externalization is therefore in entrustment to an external team, no more in-house as they say,for the performance of a service. The key points in defining and evaluating the success of the work of outsourcing are the initial contact, monitoring and evaluation of the service.

The role of local government

Abandoned the role of direct provider of the service required by the citizens, the government plays the role of interpreter of the common needs and ensures their satisfaction by external operators. This leads to a new need, to clearly define the respective roles:

  • the local authority directs, controls
  • the entity in charge providing the service

The process of outsourcing does not end with the assignment procedure of the service in question. The contracting authority has the obligation and the primary responsibility for monitoring the quality of the solutions put in place and their match with the needs expressed by citizens. The guiding principles will always be those of the public and the main instrument may be the Balanced Scorecard method that evaluates the performance by:

  • management accounting
  • detection of the objectives

The BS analyzes especially factors such

  1. process efficiency
  2. growth in resources
  3. economic performance
  4. satisfaction of the users

In short, this is to understand how the outsourcing of the productive sphere invests not only the private but also the public with the services traditionally provided by local and now entrusted to external entities, but still monitored and accompanied on their journey.

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