Outsourcing

States may be able to save money by outsourcing maintenance and asset preservation responsibilities to private entities. Outsourcing has become a popular because it gives state officials more definite cost projections. Outsourcing also provides incentives for private entities to save money and, theoretically, encourages private innovation in maintenance and preservation techniques. The potential disadvantages of outsourcing are loss of governmental oversight and quality control. Private companies might have incentive not only to cut costs but also to cut corners. Outsourcing of maintenance and asset preservation responsibilities has occurred in Louisiana, Massachusetts, New Mexico, Texas, Utah and Virginia.