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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Head of Service – Social Care

St Helena
£60k pa plus International Supplement
Enjoying unique lifestyle opportunities, St Helena Island is a self-governing overseas territory of the United Kingdom. Saint Helena, Ascension and Tristan da Cunha (SH)
Recuriter: St Helena

Health and Social Care Trainer - North Essex

Essex County Council
£29468.0000 - £34668.0000 per annum
Health and Social Care Trainer - North EssexPermanent, Part Time£29,468 to £34,668 per annum (full time equivalent) Location
Recuriter: Essex County Council

Recruitment Training and Support Officer (Fostering)

Essex County Council
£26284.0000 - £33256.0000 per annum
Recruitment Training and Support Officer (Fostering)Permanent, Full Time£26,284 to £33,256 per annumLocation
Recuriter: Essex County Council

Vocational Trainer - English

Essex County Council
Up to £34668.0000 per annum
Vocational Trainer - EnglishPermanent, Part Time£34,668 per annum (full time equivalent)Location
Recuriter: Essex County Council
Linkedin Banner