Public Sector HR Podcast

As the recession bites, much has been reported about the strong demand for outsourcing and as a consequence, profits of some of the bigger providers have soared. But according to research recently carried out by the Association of Public Service Excellence, many local authorities have been bringing services back in-house and this trend seems set to continue.

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In this month’s show, we look at the results of APSE’s research to find out why some councils are finding insourcing a realistic service delivery option. Paul O’Brien is Chief Executive of APSE and he talks to me about the reasons for conducting the research and highlights some of it’s key findings.

Over 50 case studies were examined in the research and Paul explains that one of the key reasons they undertook the project, is that there were plenty of examples and anecdotal evidence around, to indicate that this was happening more regularly and APSE members were very interested to find out more.

To reinforce this, he also came across a research report by Deloitte which identified that a lot of large American companies were bringing services back in-house. And finally, he wanted authorities to know that there is a credible option to outsourcing, which may not be the panacea that people think it is.

Key findings from the research are:

• THE PRIMARY REASON FOR INSOURCING IS POOR PERFORMANCE

• INSOURCED TEAMS PROVIDE BETTER QUALITY AND VALUE FOR MONEY

• NATIONAL AND LOCAL POLICY AGENDAS HAVE CHANGED 

• WORKFORCE ISSUES ARE IDENTIFIED, SUCH AS POORER TERMS AND CONDITIONS AND LACK OF TRAINING AND CAREER OPPORTUNITIES

• INSOURCING IS HAPPENING ACROSS ALL SERVICE AREAS

• IT’S HAPPENING FOR PRACTICLE REASONS, NOT IDEALOGICAL ONES

According to Paul, some of the most high profile outsourcing failures is in HR and consequently, this is one of the most likely services to be brought back in-house. His advice to any HR practitioner who’s facing the prospect of insourcing is:

• INVOLVE THE TRADE UNIONS AT THE EARLIEST STAGE POSSIBLE - make them aware of what you are planning to do

• CONSIDER THE CULTURAL IMPACT - ensure a ‘them and us’ culture does not arise

• HARMONISE TERMS AND CONDITIONS - between your existing workforce and those coming back to you

• COMMUNICATE EFFECTIVELY WITH THE WORKFORCE - manage by informing people, not by rumor

To play Paul’s quick video message, click in the middle of screen below.

Over 700 copies of the report have already been sold and if you would like a copy, contact APSE on 0161 772 1810 or email enquiries@apse.org.uk for more information on APSE go to www.apse.org.uk

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