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Contracting Out Services

Decent Essays
Many local governmental functions are now being performed by the third party. Discuss how contracting out services can help to deliver quality services to the people at a local governmental area. Local government have different role with federal government. Federal government mostly involves in administration and creates a policy for states while local government more into providing services to the society. Contracting out entails decentralizing the responsibility for production or services to non-government agencies, thus, it means that the government establishing the relationship with the agencies that provide the service and goods (Bish & McDavid, 1988). Contracting out could be define as

the funder or controller of a public service, in this case a local authority, will contract to a third party a part, or the whole, of a service delivery organization at an agreed price for a specified level of service and for an agreed period of time (Harrington, 2003, p. 187).

It means that contracting out is like the service that initially provided by the local government, will be transferred to the other party, like public or private organizations. Hence, the service will be provided by the non-government agencies using the money provided by the local government. However, the agencies that were being chosen by the government did not
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Public or private agencies will provide the service while local government will purchase it. The service that was being purchased by the local government will be used by the customers that are the society. It is an approach to restructure the public management to be more effective by contracting out the functions to other party beside the government can save more cost. So, all the government decision regarding the services would affect the non-governmental agencies and vice
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