09 Feb 2011
The public sector has indeed seen “a significant increase in outsourcing”, and many automatically attribute recent job losses to this trend. A less black-and-white picture should also be put forward here, however, which considers why outsourcing is an effective option.
The fundamental point missing is that budgetary constraints are causing job losses, and outsourcing simply offers a means to do more with less. The article fails to take into account the transfer of employees under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), an agreement that binds outsourcers to minimise the needless loss of jobs.
Increased uptake of outsourcing agreements is undoubtedly due to the recognition by these public sector organisations that IT is not a primary function or area of expertise. Applied effectively, IT can be a tool that supports business processes and frontline service provision, helping organisations do more with less.
Outsourcing does not, however, simply eliminate jobs in the public sector. Undoubtedly, there have been some job losses here – as with all sectors – but the article does not take into account the practice of TUPE arrangements, where a number of staff may be transferred to the private sector outsourcing company.
Importantly, these arrangements are mutually beneficial. The transferred employees have experience of the public sector organisation and its systems, while also enjoying the opportunity to work for an IT-focused firm. This is indeed a big transition, but one that is widely regarded as positive.
Joanna Sedley-Burke, Sovereign Business Integration
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