Public sector saving a fortune with outsourcing, says Tennessee

Differing American views of the outsourcing industry have been reported before (not least by us) but it keeps happening and now the State of Tennessee’s outsourcing partner is coming out fighting, claiming its decisions have saved millions. The claims are made in an article in the Tennessean.

Outsourcing many public services started in 2013 and has led not only to cash savings, which are always welcome, but  also to operational improvements, says Tom Foster, JLL executive vice president and account director for its contract with the State of Tennessee. We’d have to add a hefty dose of “well, he would say that, wouldn’t he” to the mix but the savings quoted, between $40m for this year and a projected $50m for next, should not be sniffed at.

The improvements attributed to outsourcing are inevitably going to prove more controversial. You can read the link for yourself for details but the notion that a service couldn’t be delivered as efficiently by the public sector is never going to go down well with the public sector’s representatives. (By all means it may not have been getting delivered as inexpensively but “wasn’t” and “couldn’t possibly” are some way apart as concepts).

Our previous coverage (see the link above and this one plus several others) suggests this one will run for a while. Meanwhile president Trump continues to angle for the repatriation of jobs while in the UK there are suggestions that the chancellor of the exchequer thinks the public sector is overpaid?.

So, business as usual, then…


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