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 Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Housing Ombudsman

Housing Ombudsman Service
£130,095 per annum, negotiable based on experience.
The Housing Ombudsman Service allows colleagues to choose if they wish to work in the London office, from home or a hybrid of the two London (Greater)
Recuriter: Housing Ombudsman Service

Head of Legal and Monitoring Officer

Powys County Council
£90,347 – £98,135 per annum/y flwyddyn
We’re seeking an energetic, innovative, and inspirational leader to join our team at Powys County Council Powys
Recuriter: Powys County Council

Senior Business Development Officer (MaaS)

Essex County Council
£36341.0000 - £42754.0000 per annum
Senior Business Development Officer (MaaS)Fixed Term, 2-year contract with potential for extension Full Time, 37 hours per week£36,341 to £42,754 per England, Essex, Chelmsford
Recuriter: Essex County Council

Customer Advisor (Events) - Braintree District Council

Essex County Council
Up to £13.8000 per hour
Customer Advisor (Events) - Braintree District Council£13.80 PAYE / £17.67 Umbrella Braintree, EssexPart-Time, Temporary Closing Date
Recuriter: Essex County Council
Linkedin Banner