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Councils 'to outsource one-third of services by 2015'

24 July 2012

Local councils are planning to outsource 32 per cent of all services by 2014/15 as they seek to meet ambitious efficiency improvement targets.

This is according to new data from the support services and construction company Interserve, which shows that the proportion of public sector outsourcing is set to rise further, having grown from 20 to 26 per cent between 2010 and 2011.

Councils have seen efficiency savings of 16 per cent partly as a result of their work with external partners, but need to cut costs by a further 18 per cent by 2015.

Interserve states that the achievement of these goals is dependent on public sector bodies being prepared to move beyond traditional service models and make efforts to "radically rethink" how they procure services.

Adrian Ringrose, chief executive at Interserve, said: "In our experience if the delivery model is focused around results and not processes, the private sector can support councils in their focus on delivering improved frontline services."

Last month, a report from ICT sector professional body Socitm stated that embracing shared service models will be vital to the future success of public sector operations.

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Categories: Local Government, Public Sector

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