9.6.4.  Other Models

Other options for private sector involvement are possible, and could be considered either transitional or end states. Two examples follow:

Outsourcing functional groups is a proven contracting and procurement model that should deliver efficiency and cost savings in key areas. However, it may not tackle the underlying issues preventing change if these are at an organisational level. Like the options engaging a sole contractor, there is a risk of creating private sector monopolies unless teams can be split up. There may also be resistance among staff over terms and conditions and pensions.

Contracting out individual projects is a manageable and credible option that will target private sector project and programme experience onto specific projects. Advantageously, the capability of the partner can be different for each project, depending on the requirements. Targeting individual projects means there is the threat of falling into a piecemeal approach which fails to tackle the underlying cultural issues. Projects may also be 'set up to fail'.