William Eichler 15 March 2017

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

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

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.

Participatory budgeting image

Participatory budgeting

Evgeny Barkov explains what participatory budgeting means and how it can reveal what citizens need.
For your free daily news bulletin
Highways jobs

Director of Governance and Compliance

Cheshire East Council
Six-figure salary negotiable on experience
Looking for a talented leader who is comfortable working at a strategic level as well as someone with a track record of sound operational management. Cheshire
Recuriter: Cheshire East Council

Director of Corporate Property

Westminster City Council
Competitive Salary
This is a senior role within the Council and so the key to the success will be leadership, engagement and... City of Westminster, London (Greater)
Recuriter: Westminster City Council

Property Manager Temporary Accommodation

Hackney London Borough Council
£55,233 - £56,289
We’re looking for someone who is energetic, focused and committed to managing and improving our buildings in a fast paced team. Hackney, London (Greater)
Recuriter: Hackney London Borough Council

Sustainability & Resilience Manager (maternity cover)

Essex County Council
£51510.0 - £58752 per annum
This fixed-term contract will begin in August 2020 and is expected to last until October 2021 Interviews scheduled to be held Wednesday 10th June 2020 England, Essex, Chelmsford
Recuriter: Essex County Council

Civil Service Deputy Director Roles

£70,000 - £117,800 & excellent rewards
We’re looking for significant experience of engaging at C-Suite and Board levels, excellent partnership-building and... England
Recuriter: GOV.UK

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue