Rethinking Risk: A Strategy For Improving Public Sector Sourcing Performance
- Topics:
- Sourcing
- Tags:
- Arrangement,
- Strategy,
- Sourcing,
- Purchasing & Procurement,
- Public Sector,
- Performance Management,
- Performance,
- Management,
- Human Resources,
- Business Operations,
- ...
- Source:
- Deakin University
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Overview: Governments are increasingly engaged in large-scale external sourcing of services, which vary from IT services to the provision of public infrastructure. Such arrangements are often almost impossible to reverse, and performance levels are difficult to assess. One crucial performance promise for externally sourced contract arrangements is that they will result in lower overall costs to the community. A failure to achieve expected cost savings, through for example, high transaction costs, drains community resources that should better be spent on citizens' other policy priorities. This paper draws on research in managerial decision making, cognitive biases (such as the optimism bias), and risk management to analyse the strategies typically used policy makers to assess risk and returns in pursuing sourcing arrangements.
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Format: PDF | Size: 135KB | Date: Dec 2006 | Pages: 14
