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

Director of Governance and Civic Services

London Borough of Merton
c£130,000
As the Council’s statutory Monitoring Officer, you will champion strong governance and integrity Merton, London (Greater)
Recuriter: London Borough of Merton

Executive Director Corporate Resources, Section 151 Officer

Cheshire West & Chester
up to £160,217
The successful candidate will combine outstanding professional credibility and the ability to influence Chester, Cheshire
Recuriter: Cheshire West & Chester

Director of Finance

Torbay Council
highly competitive
Not only will you fulfil the role of statutory Chief Financial Officer you will be part of a directorate team Torbay, Devon
Recuriter: Torbay Council

Housing Disrepair Lawyer - Harlow District Council

Essex County Council
£45.0000 - £55.0000 per hour
Housing Disrepair Lawyer - Harlow District CouncilLocation, HarlowFull time, Temporary 3Month Contract £45-£55 per hour (Umbrella) dependant on experi England, Essex, Harlow
Recuriter: Essex County Council

Procurement & Contracts Lawyer - Harlow District Council

Essex County Council
Up to £33.0000 per hour
Procurement & Contracts Lawyer - Harlow District Council Location, HarlowFull time, Temporary 3-Month Contract, 37 Hours per Week £25.73 PAYE / £33.00 England, Essex, Harlow
Recuriter: Essex County Council
Linkedin Banner