The Effect of Outsourcing on Public Sector Organizations

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The Effect of Outsourcing on Public Sector Organizations
JOHN H HANNAH III
UNIVERSITY OF PHOENIX

The Effect of Outsourcing on Public Sector Organizations

This paper will examine the particular issues associated with the impact of outsourcing on public sector organization’s performance and employee commitment. As the move to outsourcing is part of a wider phenonom for flexibility in the organizational, structure, development and change paradigms of public sector organizations. This paper begins by examining the problems associated with an outsourcing strategy in public sector organization.
Many counties within the US, have chosen to outsource the investment and operation of non-competitive
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Outsourcing can also help companies to have access to new technologies that might not be used in their company. This is mainly because the outsourcers use the latest state-of-the art technologies to serve their private sector clients. And this might also increase the change paradigm shift and rapid migration of these companies to new technology. Outsourcing also helps multi functional areas and department of a public sector providing the benefit of 24-hour operational cycles and providing necessary services to their customer. The ever- growing pressure for increased productivity and profitability of city, county and state governments thus, the pressures to reduce costs and improve productivity are the main factors that influenced the beginning of offshore outsourcing. For example, the main advantages to move production to private contracting of products and services to reduce in-house human resources management cost. Hence, today outsourcing has become an attractive and powerful strategy for companies to reduce cost and improve performance. These models provide theoretical guidelines upon which valid and reliable organizational assessments should be based. All of these models provide value to management and human resource organizational leaders performing organizational assessments based on a

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