Government Outsourcing Pros and Cons 16 May 2014

Government Outsourcing Pros and Cons

When government agencies choose to outsource their work to other companies, the rule book can shift a bit. Government agencies are very strict about the ways in which they work. They may have a long list of rules and guidelines to adhere to and this is why they need to be very particular regarding the choices they have picked and the decisions they take.

When we are analyzing the government outsourcing pros and cons, there are two sides to the story. There are pros and cons from the government’s point of view and also from the company who has taken up the outsourced work too. We will deal with government outsourcing pros and cons of both these aspects so that you will have a broader horizon about the entire topic.

From The Government’s Perspective

When we are discussing the main benefits that government agencies will have upon outsourcing the work, here are some of the main points that deserve a mention.

  • Quick work: No doubt, private agencies are known to work much more quickly when you compare it with the sloppy working movements in government sector.
  • Smoother operation: As a part of the work is outsourced, it becomes relatively easier to operate. The government agencies can carry out with other work and integrate the results to have a much smoother operation.
  • Simultaneous working: As a separate team is also working on parts of the job, more work can be accomplished in shorter time duration.
  • Best of both the worlds: There is absolutely no doubt about the fact that there is a huge difference in the working ways of government sector and private sector. When government agencies outsource their work to private sectors, it will help them in enjoying the benefits of both the world.
  • Cost cutting: Outsourcing has been considered to be one of the most effective ways of cutting down on your total cost. You can choose to keep your budget in check by simply choosing the best companies and getting the finest work done at right rates.

The Troubles Faced By Government Agencies

Despite these many benefits, there are problems with the decision of outsourcing work too. There are various government agencies that have actually lost their reputation, business profits and suffered because of choosing a wrong vendor. Following are the problems that may arise and so you try to avoid it.

  • Teaching the rules: Government agencies may have a lot of rules to adhere to. Sometimes, it is absolutely impossible to make the vendors understand the rules and ensure that they stick to it. They tend to do things their own way and it often messes up the work output.
  • Hidden costs: Sometimes, the overall cost that the government companies have to bear, end-up shooting high because of the endless number of hidden costs that are a part of the parcel.
  • Lack of proper understanding: Often it has been seen that the private sectors will fail to function like the government sectors. The gulf between the two makes it hard for both the agencies to work in tandem.

From The Vendor’s Perspective

When you are looking at things from the perspective of the government, you will find a different set of outsourcing pros and cons. Here are some of the main benefits and demerits that the vendors are likely to face.

The Benefits the Private Vendors Enjoy

  • Potential for growth: When private vendors are assigned work, it will help them in becoming better at the work that is done. For a vendor, getting an assignment from government agencies might be the best way of improving as a company.
  • Understanding the government operation: For those who are looking to understand the right ways in which the government agencies work, there is no better way than to receive outsourced work from government sectors.
  • Consistent work: If you are looking to enjoy a consistent work, getting contracts from government companies might do your business a world of good.

The Possible Problems That Can Happen

While private vendors are mostly looking for getting work from government sectors, there are a few disadvantages of the same too. Here is a list of some of the main problems that you may face.

  • The jargons and rules: Working for a government agency can be daunting as far as rules are concerned. There are too many rules that have to be followed and the flexibility that is present in a private sector goes missing.
  • The lack of flexibility: A lot of private vendor have complained that working for a government agency can pose problems because the flexibility goes missing. The deadlines might be very tight and you may have to work round the clock and keep an eye on all major points all the time.
  • Lack of right communication: Sometimes, it can be hard to communicate with government companies. If you are working with a government company that is not good at communication, carrying out the task can turn out to be a nightmare for you.

No doubt, there are a lot of other details that you need to keep an eye on. There are various shades of government outsourcing pros and cons and you need to be thorough with all of it. Now that you have an idea about the same, coming down to a conclusion can be easy.

– Back Office Pro

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