ART - Outsourcing in a State DOT 2004

The document discusses the development of a computer model to assist public sector managers in decision making about outsourcing agency functions and activities. The model aims to consider both cost and non-cost issues related to outsourcing and make the process systematic and uniform for all types of activities being considered for outsourcing. The document describes the pilot testing of the model for three activities: rest area maintenance, highway pavement markers, and highway striping. The results of the pilot tests show that the qualitative and cost assessments of rest area maintenance favor outsourcing, while the qualitative factors favor outsourcing for installing highway markers and painting lines on highways, but the cost assessment shows that it is cheaper to perform these activities in-house. The document concludes that the model is a decision support aid rather than a tool to prescribe outsourcing and recommends independent analysis and additional cost analysis for more accurate results. Possible extensions to the model are also discussed, and it is mentioned that the model can be used by organizations in other settings. The document acknowledges the contribution of Mr. Joseph T. Baker in initiating and guiding the research project and provides references for further reading on outsourcing in the public sector.