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Outsourcing decisions 'need a business case'

12 November 2010

A public sector expert has said government departments should learn lessons from the private sector as they bid to find new ways of delivering services.

Dean Shoesmith, president of the Public Sector People Managers' Association (PPMA), claimed new approaches such as outsourcing and shared services should only be considered if they can clearly deliver returns.

He urged public sector managers to always consider the "business case" in such scenarios.

Mr Shoesmith commented: "If you're not providing your service at a much lower cost and you're not providing any better quality, it doesn't amount to a proper business case."

He made his comments at the annual conference of the Chartered Institute of Personnel and Development in Manchester this week.

As well as his role at the PPMA, Mr Shoesmith is joint executive head of HR at the London borough councils of Merton and Sutton.

The two councils were the first local authorities in the capital to implement a shared HR service and have been held up as a model for other public sector organisations to follow.

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Categories: Public Sector


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