Outsourcing in the public sector means “contracting out” functions that  historically have been provided by public employees. The belief that there are  functions best performed by the private sector is not new, and moving these  functions from the public to the private sector requires a fair and open process  in the public’s best interest.

The Institute for Public Procurement recognizes that the outsourcing of  particular governmental functions can be a fiscally sound tool of responsible  public administration. However, identifying and assessing the elements of public  performance most appropriate for outsourcing — and ensuring a successfully  executed outsourcing decision – is a substantial challenge for everyone.

Public procurement offers a uniquely qualified and professional resource for  government decision-makers considering outsourcing alternatives. The Chief  Procurement Officer (CPO), Procurement Director or Purchasing Manager serves a  strategic role in a public entity’s decision to outsource. The CPO is central to  a fair, transparent and effective outsourcing process. While the decision is  ultimately reserved for an elected body or senior executive, the CPO is prepared  to provide informed insight on market structure, cost, risk, competitive methods  and contract form as these factors impact the quality and cost of services. The  CPO is uniquely positioned to help design and manage a process to achieve a  successful public outsourcing effort. It is therefore important to engage the  CPO early as a strategic partner to assess and to administer any ensuing  selection and contract formation process.

Keep reading this article at: http://govpro.com/resource_center/procurement_prof/public-sector-outsourcing-201212-201301/