0370 270 6000

Risky business

7 February 2011

Our recent shared services report confirms that local authorities are increasingly seeking efficiencies through outsourcing or similar partnerships. There are undoubtedly savings to be made. But also high level risks.

For example, after several years of outsourced operations, it might be difficult and expensive to bring the services back as in house skills may have been lost, even if the partnership with the private sector partner has been a success.

There is also an inevitable loss of control, where front line services are affected, leading to reputational and political risks that are hard to state in cash terms.

These risks can, and should, be managed through a sound outsourcing contract, but they cannot be avoided entirely and are not easy to quantify.

For many authorities, increased outsourcing will be a vital tool to save costs and adopt an enterprising approach to service delivery. A similarly enterprising approach to risk and reward will also be needed.

Related opinions

Building Safety Bill receives Royal Assent

The new regime introduced by the Act will take shape over the next 18 months, but those who design, build or manage high rise buildings are being urged to get ready for the changes to be introduced through the act.

View blog

Local Health Systems: Relationships not structures

The Local Government Information Unit’s Local Democracy Research Centre report, there are calls for a reinvigorated role for local government as leaders of local health systems, to develop and strengthen relationships of trust, transparency and cooperation.

View blog

The UK’s first domestic subsidy control case

We waited more than a year for it, but the wait is over – we finally have a domestic case on the new subsidy control regime.

View blog

Right to Work Checks: Changes from 6 April 2022

From 6 April 2022, right to work checks on all migrant or settled prospective employees must be online and checks on British or Irish nationals will be manual (free) or digital (charged for).

View blog

Mailing list sign up

Select which mailings you would like to receive from us.

Sign up