A Paradigm Shift in Outsourcing Functions to External Service Providers in the Public Sector: A Liability for the State

Abstract

Purpose: This study aims to explore the current trends in public service delivery, focusing on the increasing use of outsourcing to improve efficiency and effectiveness. The study examines the paradigm shift in outsourcing functions to external service providers in the public sector and its potential liability for the State. The research aims to provide a comprehensive analysis of the various aspects of outsourcing in the public sector and its impact on the State’s liability. Materials and Methods: The current research study has adopted a qualitative secondary data collection methodology to achieve its research objectives. This method was deemed suitable for the study as it has the potential to provide comprehensive, in-depth insights that are essential for attaining the study’s purpose. The study aims to systematically and rigorously examine the research variables and their interrelations by utilizing secondary collected data. This approach aided in generating valuable insights that are crucial for developing a comprehensive understanding of the phenomenon under investigation. Findings: Key findings of the study include: Management is negligent in the appointment of external service providers owing to the tendency for public organizations to outsource services that can be performed internally, leading to excessive spending for the government; State employees are privileged and given the autonomy to transfer their responsibilities to service providers, without the government’s expenses proper considerations; Outsourcing potentially leads to the redundancy of    experienced and competent workforce, and Governments pay for the same service twice arising from outsourcing. Implications to Theory, Practice and Policy: The study offers a detailed and practical framework for public organizations, policymakers, and other stakeholders to make informed decisions about outsourcing. The framework effectively addresses the various challenges and risks associated with outsourcing, providing a viable solution to mitigate them while saving costs and jobs. This approach can help organizations improve their outsourcing practices and contribute to better service delivery to the public. The study offers a detailed and practical framework for public organizations, policymakers, and other stakeholders to make informed decisions about outsourcing