Whether within individual departments or across entire governments, there is palpable pressure to identify means of cutting spending and reducing deficits. Economic constraints are mounting, as are calls for greater fiscal responsibility and transparency.

In an environment where budgets are squeezed and the risk of significantly scaling back services looms large, many decision-makers instinctively turn to outsourcing as a potential solution. This inclination often stems from the traditional view of outsourcing as a way to reduce costs quickly, providing an immediate reprieve from financial pressures. However, this perspective requires a rapid refresh.

Yes, it can lower costs. But to be the most viable and effective solution, outsourcing must deliver more than just initial cost savings. It should be a means of realizing long-term efficiencies, adding value, and providing access to skills, services or assets that would be unobtainable if operations were to remain in-house or with their existing providers.

As such, government needs to shift its view and look at value creation. And this, in turn, necessitates a broader understanding of the wider business process outsourcing (BPO) industry, its current capabilities and how those capabilities can help realize long-term objectives and enable sustainable growth. This change in capabilities demands a change in how government not only perceives outsourcing, but in what it selects to outsource and how it assesses the suitability of any potential BPO partner.

This guide aims to equip government leaders with the insights and methodologies necessary for selecting the right outsourcing partners and ensuring successful engagement, while also addressing the common misconceptions about the industry.