Term Paper: Outsourcing Today

Sample Term Paper

Words 2,198

This term paper discusses outsourcing in the modern world. Outsourcing in the public sector is growing. Solid numbers are hard to come by at least in part because executives in different countries do not even share the same definition of the term but the trend is obvious.

Outsourcing in the public sector is growing. Solid numbers are hard to come by at least in part because executives in different countries do not even share the same definition of the term but the trend is obvious. By the end of the 1990s, governments around the world had transmitted more than $1 trillion in assets to the private sector.

1.  From this base, outsourcing in the US government is likely to double over the next five years.

2. A recent IDC report shows outsourcing expenditure in both United States federal, state, and local governments growing at faster rates through 2005 than in any other industry segment 15.7 and14.7 %, respectively. (Doyle, 2001)

The question is what is driving this growth. As mentioned in the previous section, over time government has become concerned in outsourcing an ever-broadening range of public functions from running schools to collecting taxes.

President’s Management Agenda

In the summer of 2001, the Bush Administration released the President’s Management Agenda (PMA) outlining five major government-wide management improvements. The guiding principles behind these reforms are to make government citizen-centered, results-oriented, and market-based.

Under the PMA’s competitive sourcing goal, and pursuant to the Federal Activities Inventory Reform (FAIR) Act, agencies are compulsory to assess and classify the various activities carry out by federal agencies as “commercial” or “inherently governmental.” Based on this analysis and building toward the President’s 50 % goal, the PMA requires agencies to compete approximately 15% of these commercial activities government-wide through public private competitions or direct conversion competitions in the following year.

While outsourcing is now an accepted delivery system for public goods and services, the subject now being raised are aimed at assessing the quality of the goods and services provided by non-governmental body, the true cost and effectiveness of outsourced programs, and the impact of outsourcing on both public and private sector employees.

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