Contract planning and a “spirit of cooperation” are the two major planks to successful public sector outsourcing, the head of IRIS Consulting has said.
Speaking at the eWorld Procurement conference in London yesterday, John Harvey, managing director of IRIS Consulting, shared the lessons he learned from his career supporting government outsourcing projects, including a review into local government (LG) outsourcing conducted for the Department for Work and Pensions.
Here are the four main pitfalls LGs need to watch for when contracting a service:
1. A blame culture
Services are often outsourced because they are failing or need improvement, said Harvey. But that doesn’t mean outsourcing is always welcomed by the in-house public sector providers. This initial resentment can lead to the creation of a blame culture when problems do happen, with in-house teams quick to say, “We told you that this would happen”. Contractors are also quick to blame the client for problems, often saying they had not been told the full scope of a contract or the problems within a service they were taking over.
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