William Eichler 15 March 2017

Lack of commercial skills in local government ‘barrier’ to outsourcing

A lack of commercial skills in local authorities is a ‘significant barrier’ to successful outsourcing, report finds.

A new report from the legal services provided Ashfords LLP has discovered many councils are bringing previously outsourced services back in-house.

Based on the findings of an iGov survey of 129 councils, the report said 88% of participants are currently working with other local authorities by way of shared services, other partnership working or a corporate joint venture agreement.

Over a third (36%) of participants stated services are mostly provided in-house. However, 20% cited multiple supplier outsourcing, and 19% have a shared service agreement in place with another local authority.

The report, titled Outsourcing public services across local government, found the factors critical to the success of outsourcing included: planning and structuring of the outsourcing arrangement, building relationships with the outsourcing partner, and clear methods of communication.

It also revealed the two ‘most significant’ barriers to success are a lack of commercial skills/know-how and the perceived impact on staff morale.

Ashfords LLPS laid out four steps local authorities should consider when reviewing outsourcing arrangements: take time to prepare the outsourcing arrangement, communication is key, training, and appoint an outsourcing and shared services specialist.

SIGN UP
For your free daily news bulletin
Highways jobs

Deputy Headteacher

Durham County Council
£66,368 - £73,105
Permanent Contract - Full Time - N.O.R. 341 Required for April 2027 or earlier (if possible)   Due to the promotion of the current post holder, an exc Seaham
Recuriter: Durham County Council

Bereavement Officer

Durham County Council
Grade 8 £33,673 - £37,563 pro rata
Are you a compassionate, organised and customer-focused professional with the ability to support families and communities during some of life's most d Durham
Recuriter: Durham County Council

Shared Planning Lawyer

Broxbourne Borough Council
Up to £68,506 pa
Are you a focused, enthusiastic team player who enjoys a varied and interesting caseload? Borough Offices, Bishops’ College, Churchgate, Cheshunt
Recuriter: Broxbourne Borough Council

Families First Partnership Manager

Nottingham City Council
£58,602 - £62,109
As Families First Partnership Manager, you will play a pivotal role in leading Nottingham’s Families First approach Nottingham, Nottinghamshire
Recuriter: Nottingham City Council

Experts at Hand Co-ordinator

London Borough of Richmond upon Thames and London Borough of Wandsworth
£42,081 - £50,994 per annum
Experts at Hand Co-ordinator
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth
Linkedin Banner