Perceptions about outsourcing are often far removed from the reality of what is happening on the ground. All too frequently, decisions are made based on assumptions that relate to traditional forms of outsourced service provision. However, we have come a very long way since the days of local authorities and public agencies farming out routine back-office services in an inflexible contract with an external service provider.
Today, outsourcing is a far more sophisticated and adaptable form of service delivery which is often founded on innovative partnership agreements and a fundamental commitment to service transformation. Indeed, the success of such programmes is fuelling shared knowledge between the public and private sector that goes deeper and wider than ever before.
Significantly, however, many of the shared service partnerships within local government are often delivering complex and high value services — not just the straightforward back office processes of years gone by. And their success is founded on assured service performance standards as well as guaranteed savings for the host authority.
Our own partnership with Hertfordshire county council is a good case in point. Here, wide ranging service transformation is taking full advantage of new technologies and new business models to improve service efficiency in areas as complex as adult social care, while also embracing the active participation of third sector organisaitons such as Age UK.
This is a significant move forward from the conventional contracts previously used in the world of outsourcing — especially when it comes to ensuring substantial savings, the adoption of new technologies and working practices.
It is often extremely difficult for traditional methods of service delivery to produce sustainable high levels of efficiency. The move of authorities to work in partnership with private and third sector service providers will, in my view, continue to gather momentum.
We should recognise what achievements and significant outcomes have been, and continue, to be made as a result of this collaboration.
Acknowledging such progress will help to create greater flexibility within the procurement process. This, in turn, will help to minimise risk, maximise opportunity and ensure that future service provision can be flexed according to practicalities, demographic changes, budget constraints and the demands of an evolving financial and commercial landscape.
Gareth Moss is partnership director at Serco
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