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Public sector outsourcing set to grow

Posted on: Tuesday, November 20th, 2012

Public spending cuts have put all sorts of state-run bodies under pressure in the last few years.

Both local and central government organisations are feeling the squeeze as the coalition aims to balance the country's books and wipe out the UK's budget deficit.

This has led to many public sector groups being forced to look at new and innovative ways of delivering their services.

After all, the onus is now firmly on efficiency, so they can operate more efficiently without any noticeable drop in the quality of the service they provide.

So what approaches are being used to achieve this outcome? Well, outsourcing to third party providers is proving very popular.

It makes sense, as it means public sector organisations can pick up certain skills and expertise only as and when they are needed, so they can devote their full-time resources to getting on with their primary job.

Everything from payroll management to office cleaning can now be outsourced to an external body, and it seems to be producing the goods for councils, schools and other organisations.

As a result, Capita is confident public sector bodies will continue embracing this approach in the run-up to the next general election, particularly now that the current parliament is past its halfway point.

Speaking to Reuters, chief executive Paul Pindar said: "We're now in the second half of the football match and the activity needs to kick off again."

Of course, questions about outsourcing to private sector bodies have been raised following G4S's Olympic security debacle.

Nevertheless, Mr Pindar does not believe this will adversely affect outsourcing activity over the next couple of years.

"Issues such as that will not make an iota of difference," he insisted.

"The outsourcing industry is a force for good and we're also trying to help the UK economy get back into balance, which it badly needs."

While the economy may now be out of recession, the country's financial troubles are by no means over, so both public and private sector organisations might find outsourcing certain responsibilities and tasks reaps rewards in the short and long term.