SnowdropKCS HR and Payroll Solutions, over 30 years' experience in the HR and Payroll industry

Payroll Outsourcing News

Payroll outsourcing could "quietly add value" to public sector

23 August 2011

Payroll outsourcing could "quietly add value" to public sector by Editorial team

The government's Open Public Services white paper has put forward the idea of allowing further privatisation of certain functions that have been state run, which could mean councils look to payroll outsourcing to save money.

However, chairman of the National Outsourcing Association Martyn Hart has argued in an article for online news provider Public Finance that the advantages of farming out processes to external firms is rarely covered by the media and the benefits of the move may be overshadowed by the press preferring stories where something has gone awry.

"What of the gloriously successful cases? The projects that go largely unnoticed, as they quietly add value for all concerned - benefiting not just departmental budgeters, but internal stakeholders and the all-important service users, all at the same time," the expert said.

Mr Hart indicated that farming out functions is becoming more popular, with companies bidding on tenders for jobs and many local authorities looking for third parties to take on such functions as communications and IT, but it is the instances when there has been a data leak or similar issues that the public hears about.

The All-Party Group on Outsourcing and Shared Services has been set up to spread the word about what benefits can be gained from farming out work to external companies, facilitate communication between government and the industry and to ensure issues faced by the sector are addressed.

Conservative MP Bob Blackman chairs the panel, while Labour politicians Siobhain McDonagh and Tom Blenkinsop are vice-chairs and Ian Swales of the Liberal Democrats has the role of secretary.

Mr Hart suggested there is "an urgent need" for such a committee, which will give members of the National Outsourcing Association a say, as well as provide a balanced analysis of the industry.

He said representatives from the sector would offer information on projects that have gone wrong in the past and suggested that, although the majority of work shared between the public and private sector goes well, even successes could be improved through discussion.

"When spending on behalf of the taxpayer, there needs to be a constant drive to be slicker, leaner, and more cost-effective," he explained, adding that outsourcing projects that have resulted in savings and improved services will be brought to the attention of the all-party group.

The committee will be meeting today (August 23rd) to go over evidence that has been received on outsourcing projects.

It was recently reported by the Florida Daily Record that schools in the US state had opted for payroll outsourcing to make budget cuts.

This could be the kind of move UK institutions make as they try to become more cost effective in their operations while the government slashes public spending.

Indeed, solutions to smaller budgets are being made by local authorities, with Nottingham City Council recently deciding to set up the Portfolio website, on which all regional services can run marketing campaigns as a shared function, rather than different departments looking after their own publicity needs as before.

The officials have also offered its employees the chance to buy annual leave through the Holidayplus scheme, which gives personnel the opportunity to sacrifice part of their salary to have an extra day off.

Click here to join our LinkedIn groupADNFCR-2921-ID-800708614-ADNFCR

Browser does not support script.

Email your friend a link to this news

Your details:


Your friend's details: