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Management and Public Sector

PM started straying to the growing and increasingly less Justified outsourcing of public services, leading too completely opposite effect than expected and desired. Despite the high expectations, subsequent experience has shown that outsourcing cannot be a panacea for the majority of problems in the public sector, which most frequently occur due to poor long term strategy, or even lack of it. While on the other hand, regardless of the long term strategies and goals, public sector often acts uncontrollably, indiscriminately and non-critically while implementing and pursuing somehow non-reflectively set objectives.

Furthermore, significant problems are charted in movement to the wholesale use of competitive tendering and positioning outsourcing as a strategic tool of public management. Over the last two decades external provision of IT projects (outsourcing) has become a principle in most parts of public sector, which caused uncontrolled “brain drain”, outflow of vital professional knowledge and loss of core competencies in public sector.

It is evident that situation has escalated to the point that some government departments completely lost control over preparation, placement and realization of planned projects, which consequently results in weak control over increasing costs and reduced accountability for services. Furthermore outsourcing very often means absolute dependence on external providers.

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This issue is currently a very hot topic and represents one of the fundamental problems of cost-effective while long-term successful and coordinated public sector.

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