Declining appetite for outsourcing in local government 12 October 2018
New research published by New Local Government Network (NLGN) finds evidence of a declining appetite for outsourcing amongst councils.
Its survey of leaders and chief executives found that only 15% said they intend to outsource more over the next two years. Thirty-nine percent say they will outsource less and 46% indicate no change.
The report, From Transactions to Changemaking: Rethinking partnerships between the public and private sectors, said that because of recent high-profile failures, such as Carillion, the public sector’s confidence in outsourcing is dwindling and is increasingly seeking more influence over partnerships.
The NLGN argues that the issue is more complex than the simplistic picture of ‘outsourcing vs. in-house’ emerging between the Conservative and Labour parties.
The report concludes with a set of recommendations. This includes calling for a new accountability code of conduct to increase public oversight of the private sector, as well as a ‘social responsibility accreditation system’ for contracts worth £200,000 or more and, for those worth over £1m, open book accounting.
We recently published a series of reports looking at the future of ICT outsourcing. These reports focus on a plethora of topics including outsourcing versus the cloud; the changing environment; and the role of SMEs. View the reports here.