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Thread: Public Sector Outsourcing

  1. #1
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    Default Public Sector Outsourcing

    http://www.arthurcox.com/uploadedFil...uly%202013.pdf

    Arthur Cox article with some views on outsourcing. Having gotten bogged down in the document and eventually reading some of it, the document is an account of sorts and where possible outsourcing might happen.
    As per the Public Service Reform Plan,
    in relation to outsourcing a series of
    timelined steps are outlined, which relate
    to overall identification of opportunities,
    development of business plans and,
    importantly, strengthening of public
    service “commercial capability” in the area,
    which should include the challenging
    area of project structure and supplier
    management. It is an essential feature
    of outsourcing that a strong customer
    commercial function is needed to manage
    suppliers. This area of historical public
    sector weakness is, we understand, under
    review by DPER. Overall, the outsourcing
    industry has taken up the challenge
    of presenting suitably compelling
    arguments for outsourcing in appropriate
    circumstances and with reference to the
    stipulations of the Croke Park Agreement
    One company that may have an interest in this is South Western Business Services, an Irish company . On their website it says :

    http://www.southwestern.ie/

    SouthWestern is a market leader in the provision of integrated front and back office services. Our key focus areas are Finance & Accounting, HR and Payroll, Customer Relationship Management and integrated front and back office services. Our sector focus is in our key markets of Public Sector, Financial Services, Travel, Media and Food and Drink. We provide business services to leading public and private sector clients in Ireland, the UK and Europe.

    One of their directors is one Joe Walsh whom may be familiar as the once Irish minster for Agriculture .

    When you look at outsourcing over all, cost effectively it does not really play out. Patricia King from SIPTU last year concluded that after a study that there is very little cost benefit from outsourcing of the Health Service and in the long term that this may even cost the state more.

    KPMG's Paul Toner however takes a different attitude, getting all excited about the opportunities afforded by outsourcing

    http://www.eolasmagazine.ie/outsourcing-irish-insights/

    There are already many good examples of this:

    • the HSE now has a legal outsourcing framework that governs the outsourcing of legal services that has improved the effectiveness of the service while driving down costs;

    • a number of the financial services institutions have outsourced special servicing to third parties who bring more effective technology solutions and skills to support a more effective process offering increased performance at a lower cost;

    • numerous utility and public service companies have outsourced selected customer servicing processes to third parties who have ‘best in class’ customer servicing platforms that would be prohibitive in terms of time and cost for those entities to put in place themselves.
    History is the only true teacher, the revolution the best school for the proletariat - Rosa Luxembourg

  2. #2
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    Default Re: Public Sector Outsourcing

    Outsourcing is an' euphemism' for cutting their costs as it's often used in accounting term.

    Sometimes it doesn't work out that way as it happened before.

    In other words, cutting the costs translates into an increase in their profits. For instance, Costs for payroll may cost more than an agency costs. So hence the need for outsourcing !!!

    A public service entity should be an non profit operation cos it provides a service to the public.

  3. #3
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    Default Re: Public Sector Outsourcing

    Quote Originally Posted by disability student View Post
    Outsourcing is an' euphemism' for cutting their costs as it's often used in accounting term.

    Sometimes it doesn't work out that way as it happened before.

    In other words, cutting the costs translates into an increase in their profits. For instance, Costs for payroll may cost more than an agency costs. So hence the need for outsourcing !!!

    A public service entity should be an non profit operation cos it provides a service to the public.
    +1

    Already look at the waste disposal debacle
    History is the only true teacher, the revolution the best school for the proletariat - Rosa Luxembourg

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