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

School Crossing Patrol Officer

Essex County Council
Up to £13.4600 per hour
School Crossing Patrol Officer Chelmsford, Essex Part-Time, Temporary 7.5 hours per week, term-time only Up to 6 Months £13.46 PAYE / £17.24 Umbrella England, Essex, Chelmsford
Recuriter: Essex County Council

Adults Social Worker - Mid Essex (Various Teams)

Essex County Council
£38487 - £51834 per annum + Flexible Working, Hybrid Working
Interviews will be held in person at County Hall on 8th June 2026.We're an adult social care service that wants to see citizens of Essex have as much England, Essex, Chelmsford
Recuriter: Essex County Council

Administrative Officer

Durham County Council
£26,403-£28,598 (pro rata)
Administrative Officer Permanent, Full Time, Term Time Only Required to start September 1st 2026   The Headteacher and Governors of this Outstanding M Seaham
Recuriter: Durham County Council

Assistant Psychologist

Durham County Council
Grade 8 - £32,597 - £36,363
This is a 2-year post within the Educational Psychology Service which is part of the SEND and Inclusion Service for Durham’s Children and Young People Spennymoor
Recuriter: Durham County Council

Structures Assistant Engineer

Durham County Council
£35,142 - £39,152
Highways Services re looking for a Structures Assistant Engineer to join their Highway Team.    WHAT IS INVOLVED? You will be responsible for providin Durham
Recuriter: Durham County Council
Linkedin Banner