ReportsandReports - Outsourcing in the Government Services Market (Best Practice Insights)
Outsourcing in the Government Services Market (Best Practice Insights)
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In recent years, government has become a new market for outsourcing services, as agencies struggle with the need to deliver services under increased cost pressures.
Scope
- Examines the market for outsourcing in the public sector
- Provides strategic recommendations to government agencies on best practices for outsourcing
This is a unique time for the government services market; the convergence of a strained economy, the retiring workforce, a new administration and demand for better public services have created a environment where old assumptions are being challenged
Reasons to Purchase
- Understand the challenges facing the public sector which is shaping the outsourcing market
- Learn about best practices agencies can adopt when considering entering into an outsourcing agreement
SUMMARY 2
Impact 2
Ovum view 2
THE US GOVERNMENT IS UNDERGOING UNPRECEDENTED TRANSFORMATION 3
The financial crisis significantly affected agency budgets 3
Federal employees are retiring in unprecedented numbers 4
Spending priorities have shifted focus and contracting regulations are being re-examined 5
Obama is seeking reductions in sole source contracting and an increase in 'insourcing' 6
AGENCIES MUST SEIZE ON THE STRATEGIC OPPORTUNITIES THAT OUTSOURCING PROVIDES 7
Faced with limited resources, agencies are re-evaluating their delivery models 8
As the market becomes more sophisticated, governments are re-defining 'core tasks' 8
IT-led BPO is driving the market for outsourcing 9
Outsourcing presents unique political challenges for governments 9
Business functions with potential for automation will deliver the greatest savings 10
Opportunities for outsourcing lie in common programs which exist across multiple functions 10
Resource-intensive processes provide the most opportunity to reduce costs by outsourcing 11
RECOMMENDATIONS FOR GOVERNMENT AGENCIES 12
Leverage all available information to select the right provider 12
Agencies must make their decisions strategic, not simply cost-based 12
Understand the intricacies of government procurement 13
Maintain compliance with security and privacy regulations 13
Transparency will increase in importance 14
Maintain a strong, ongoing relationship with the provider that allows for flexibility 14
APPENDIX 15
Definitions and acronyms 15
Further reading 16
Methodology 16
Ovum Consulting 17
Disclaimer 17
List of Figures
Figure 1: Agency budget change, 2009-2010 4
Figure 2: Lack of resources is the leading reason for outsourcing 5
Figure 3: Global outsourcing spend by vertical, 1994-2009 Q1 7
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