ART - High-Risk Government Outsourcing 2008

The document discusses a research project that examined the outsourcing of government services in three municipalities, referred to as Municipality A, B, and C. The focus of the research was on the effectiveness of the outsourced services and the management of the vendors. Municipality A was found to be the most effective, with satisfactory levels of service, a decrease in complaints, and quick resolution of reported problems. Municipality B was ranked second, with no serious deficiencies but a need for improvements based on public meetings. Municipality C ranked third, with a contract that was more regulatory than performance-based and showed clear deficiencies in the service. The document also provides information on the characteristics of each municipality's approach to managing their vendors. Municipality A and B had more performance-based contracts with many result measures, while Municipality C had a more regulatory contract with more process measures. Municipality A had a thorough knowledge of critical factors and dedicated more time to inspections, while Municipality B had a somewhat lower level of ongoing performance measurement. Municipality C had minimal performance measurement. Additionally, the document highlights the importance of ongoing communication and coordination in the outsourcing process. It mentions that the level of communication and cooperation varied significantly across the municipalities, but does not provide further details on this aspect. Overall, the document provides insights into the effectiveness of outsourced services in the three municipalities, their vendor management approaches, and the significance of ongoing communication and coordination in achieving successful outsourcing outcomes.