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Outsourcing becoming favoured by local councils

22 October 2009

Local councils have become more inclined to use outsourcing as a way to minimise costs and safeguard jobs.

This is according to a survey by the Local Government Chronicle (LGC), which revealed that a number of council chief executives are using private providers thanks to their dual benefits.

Outsourcing of finance and accounting locally was considered by 16 per cent of chief executives and their deputies, while ten per cent said they would be happy for services to be moved anywhere within Britain.

A further 17 per cent said they were prepared for property management to be outsourced locally, while this also applied to 13 per cent considering human resources and payroll.

IT and revenue and benefits were also named as two departments that could be outsourced locally.

Speaking to the LGC, Martin Rayson, lead officer for HR transformation at the Public Sector People Managers' Association (PSPMA), said the reasons for the shift stemmed from the recession and perceived damage to employment prospects.

"Councils are grappling with reducing costs now and looking to the future against the need to do all they can to protect and enhance local economies," he explained.

The PSPMA aims to develop best people management practice within the public sector.

Categories: Local Government


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