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

Team Manager

Durham County Council
Grade 14 - £50,269 - £54,495
Are you an experienced, motivated leader with a passion for improving outcomes for children and young people? We’re looking for someone who can inspir Durham
Recuriter: Durham County Council

Social Worker, Connecting Families Team

Durham County Council
Grade 9 £35,412 - £39,152 (Pre-Progression) / Grade 11 £44,075 - £48,226 (Post-Progression)
Connecting families are a team within the Children in Care service in Durham. The team support families of children who are subject to a Section 31 Ca Durham
Recuriter: Durham County Council

Human Resources Officer Advice and Support

Durham County Council
£35,412 to £39,152 p.a. (Grade 9)
  Do you want a new challenge?  An opportunity to develop your career in HR or try something new? If so, come and join our team. The post is full tim Spennymoor
Recuriter: Durham County Council

Support Officer

Durham County Council
Grade 6 £28,142 - £31,022
WHAT IS INVOLVED?   Do you want a role where your organisation skills make a real difference in local communities? Join our Newly remodelled Local Net Durham
Recuriter: Durham County Council

School Crossing Patrol

Durham County Council
Grade 1 £4,800 (approx.) £12.85 per hour
Join our School Crossing Patrol Service! Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit? Durham
Recuriter: Durham County Council
Linkedin Banner