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Review of Public Procurement in Scotland - Report and Recommendations

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14 Procurement of Outsourcing Capability

Background

There is in my opinion an economic opportunity for the Public Sector to extend the current low level of outsourcing to sub contractors. This could potentially reduce costs and certainly introduce more variability into the Public Sector cost profile. Also, where internal resources are growing or under pressure outsourcing can offer a sound alternative to recruiting additional fixed resources.

Findings

Although there is some interest, there is not a widespread practice of evaluating outsourcing alternatives compared to the traditional in-house provision and conduct of operations from internal resources.

14.1 Recommendation

There should be a review of non-core activities to establish candidates for outsourcing evaluation.

14.2 Recommendation

Where there is a sound business case and internal resource issues are manageable then outsourcing strategies should be pursued.