Outsource to India

December 5, 2009

BPO and the Public Sector: Evolution of an Organizational Tool

The advantages of business process outsourcing discussed in this series of articles have hereto been restricted to its implementation in a very business-orientated sense. Naturally, though, business process outsourcing can be appended to a range of organizational spheres beyond the successful maintenance of an independent business. The benefits of BPO to the public sector are finally being realized as a smart solution to the cost/efficiency problems of the public sector, and of evaluating the effectiveness of certain public services.
Due to the availability of publicly-available information on tax spending, we are already beginning to see public services utilizing the advantages of BPO much in the same way as the private sector, to optimize and justify the spending of taxpayers’ money and to evaluate the continued productivity of these areas.
Essentially, the problems in managing public services and in managing company performance are very similar. There is an ideal level of productivity and citizen/customer service that must be balanced against the availability of skills and funds. Though an incredibly simple concept, this allows us to see the opportunities for integrating BPO into the public sector with similar results as in the private.
There are several debates currently active about the implementation of BPO in the public sector, though most are concerned with the correctness of outsourcing as a tool as applies to governmental neutrality. There is, however, enough evidence from 2009 to suggest the negligence of spending and efficiency in public sector organization, especially concerning IT processes.   
As far as saving is concerned, serious savings in middle and back office processes are dominant points of discussion as to political functioning at present, certainly as Conservatives wish to revolutionize the concept of public services. The optimization of local and central authorities’ processes would serve not only to reduce waste in the upkeep of administration, but would allow for the implementation of highly-competitive data-security solutions already in place in several European countries including France and Belgium.
As BPO vendors have been building their public sector acumen and solutions for several years now, the outsourcing option could even serve as a neutral alternative in maintaining the performance of certain public service areas. Think of the lack of accountability in the debate between OFSTED and the educational services – each is in constant criticism over the conduct of the other, as there is no formal agreement on what ‘performance’ is when rhetoric is removed. A BPO solution here would allow for accountability where there is currently only this type of rhetorical fingerpointing from the ‘opposing sides’.
Traditionally a difficult area of industry to crack, BPO for the public sector is currently expanding to show its merit with a plethora of solutions, and to challenge the validity of costly in-house administration, when the recipient of the quality of service is the very public whose tax serves to fund it.
In light of the June 2010 election and the focus on improved public service as a whole, BPO is likely to be one of the most discussed strategies to changing the face of the continued upkeep of governmental processes, and the distribution and organization of key governmental administration as a whole.

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