Business

Outsourcing, an effective business trend in public administration

The outsourcing of business processes, the outsourcing of business processes (BPO) is an increasingly attractive and effective commercial trend to improve competitiveness, reduce costs and delegate certain functions to a specialized external service provider. Private companies choose this resource because of the high specialization and the advantages it generates, but what about the public company? Does the public administration use this business model? Well, yes, the Administration is one of the sectors, along with telecommunications, banking, industry and services, the most involved in this modality. The administration is very interested in the development of outsourcing because of its enormous advantages, although in this area there are still some difficulties for its development.

Subcontracting, in the public sector, allows the Administration to outsource the provision of activities, services and / or procedures according to the chosen procurement method. Outsourcing does not mean the privatization of the service, that is to say that competition remains public, its provision is subject to the control of the public administration which, in any case, does not exonerate its responsibility towards the users of the services. services or activities. Human resources management is generally governed by labor law, although the civil service regime, or even the statutory regime, may also be applied. The management of material resources and the procurement of goods and services are subject to the provisions of Law 9/2017 of 8 November on public procurement. Finally, in order to guarantee transparency, adequacy and avoid direct adjudication, procurement is carried out by public call for tenders where the different providers will agree to obtain the provision of a service or ‘an activity. Public-private collaboration establishes ground rules set by the public administration, which means that the private company must comply with the execution of the service as dictated by the competent body. Public-private cooperation, they argue from Hasten Group, “guarantees the quality of services and the well-being of citizens, who perceive the professionalization and modernization of the administration itself by delegating certain functions to suppliers to manage the strategy commercial ”.

Hasten Group, specializing in the development of cross-platform applications and given its long history and experience in outsourcing services, applies an agile methodology with the best solutions adapted to each case, which reduces obstacles and makes profits profitable . A trend, that of outsourcing, on the rise in public administration with its lights and shadows. Regarding the barriers, the Hasten Group tells us, “among those that outsourcing encounters in the administration, in the case of Spain, it is the vertical nature of the administration itself, with too much obstacles and control of bureaucratization, administration requires an exercise in flexibility and decentralization, as well as a process of adaptation and permanent adjustment. On the other hand, the needs of public administration are the same as those of private sector companies in terms of effectiveness and efficiency, which is why, among its application advantages, the following stand out: , lower costs, greater flexibility of subcontracting according to their needs, the conversion of fixed costs into variables, a positive perception by citizens of the modernization and professionalization of the administration, greater specialization and an accumulated experience of the services or activity as well as a better efficiency of the services provided “.

Outsourcing should be seen as an element of transformation and modernization of the public administration itself, in the general interest of offering and guaranteeing the best services to citizens. The proof is that, behind financial organizations, it is the sector that carries out the most outsourcing actions. However, despite the good data, in Spain, the consulting firm says there is still a long way to go in terms of developing and implementing outsourcing.

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