Government agencies have started to outsource services from the private sector in order to keep a fast track of accomplishing their objectives towards helping the country s economy and security needs. Though some find it very hard to negotiate with the public sector as the process of selection is so bureaucratic and tedious, the government sector has learned to expedite the selection of vendors to serve their needs.
One of the factors that led government to outsource services is to increase its focus on privatization, e-government initiatives, difficulties in attracting and retaining skilled staff, the growing emphasis in interagency collaboration, and pressure to improve financial performance. Government agencies can earn its rewards by deciding to work with IT service vendors to speed up its work output.
Three factors why government decided to outsource IT service:
1. Cost. Government agencies are not knowledgeable enough of having control into the costs of current operation. They are aware of what they are spending but they do not always know where the money goes. Outsourcing is a tool to resolve agencies cost dilemma as service providers gives its agencies a chance to understand how business is to operate. There is a clear understanding of the relationship between the costs and benefits of IT. 2. Technology. Government agencies technology problems on their inability to keep paced with e-government initiatives, demands for greater interagency collaboration, and the need for standardized environments. Government agencies still work on outdated equipment.
3. Personnel. Government agencies aging workforce and the non-IT staff.
Government Outsourcing is an answer to having the delivery of better service to taxpayers on time, after all taxpayers deserve to see results on where their money is used.