Why dont Municipalities outsource functions?

[sox63]

http://www.fin24.co.za/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-25_2105001

As with Mr Manual, I'm also getting tired with lack of capacity excuses. I however have to wonder, why not outsource the areas where they have no capacity?

Having been in IT, outsourcing is a complicated process, however if done right it works. The funds are available and there are a whole lot of companies with the skills to assist, be it fiancial, engeneering or sanitation. If Local Goverment is concerened about staff losses, then they ask the service provider to take on the staff. They can even build in a staff development/training aspect to the contracts.

What they wanted to do has failed (whatever that was) and a re-think is needed drastically.

Any more suggestions? Then maybe we can approach SALGA and make a truck load of money.

 

[Luke7777]

The problem is that in general the service provider doesn't have the skill set to do the job of a local government official and/or they don't understand the business. Also what benefit are there for service providers to take on LG staff ?

 

[McSack]

I however have to wonder, why no...es to manage long term outsource contracts???

 

[McSack]

. Also what benefit are there for service providers to take on LG staff ?

Therein lies the rub

 

[sox63]

The problem is that in general the service provider doesn't have the skill set to do the job of a local government official and/or they don't understand the business. Also what benefit are there for service providers to take on LG staff ?

If we look at some of the major corporates and even international companies, there are skills, it is just that they are not cheap! Many companies can source talent from overseas. For instance, I'm pretty sure some of the people working on the Gautrain are not South African.

If every municipality had the political "balls" to do things differently, and using various methods of getting their mandate accomplished.

As for the staff issue, service providers can price their solution accordingly and make it worthwhile for them. And they manage the performance of the guys, and if they don't perform, they are out. No union can say anything about it. That's why they do not want mass privatasation of state assets.

 

[Johan Beaurain]

Outsourcing cannot improve the quality of service to the public

http://www.fin24.co.za/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-25_2105001

As with Mr Manual, I'm also getting tired with lack of capacity excuses. I however have to wonder, why not outsource the areas where they have no capacity?

Having been in IT, outsourcing is a complicated process, however if done right it works. The funds are available and there are a whole lot of companies with the skills to assist, be it fiancial, engeneering or sanitation. If Local Goverment is concerened about staff losses, then they ask the service provider to take on the staff. They can even build in a staff development/training aspect to the contracts.

What they wanted to do has failed (whatever that was) and a re-think is needed drastically.

Any more suggestions? Then maybe we can approach SALGA and make a truck load of money.

I do not think that outsourcing services will improve the quality of the service to the public. Contracts must be renewed every so often. That results in a situation where development efforts no longer takes the long term vision into account. The contract holders lives for today and the profits that they can realise today. If it means that the infrastructure must deteriorate so that they can realise a higher profit, then that is how they will do it.

As for staff development; If a huge municipality like the City of Cape Town could not yet succeed in developing proper staff development programs, how will it succeed in a thousand and one outsourced companies?

 

[Natas]

There is legislation governing this. Outsourcing would IMO only benefit the few rich people. This would increase levels of service but poor people would not be able to afford these things. Here I am referring to important municipal services and functions. Yes we suffer a little in the service area, but these remain under the control of the State so that people who cannot afford basic services otherwise, can enjoy them.

People like you and I who can perhpas afford to pay a little extra can tolerate these things being outsourced. Consumers such as ourselves would benefit from the service/whatever in question being run like a business and not a charity. This is why we need to kull all poor people.. kull them all to death!!

 

[VanZan]

There is legislation governing this. Outsourcing would IMO only benefit the few rich people. This would increase levels of service but poor people would not be able to afford these things. Here I am referring to important municipal services and functions. Yes we suffer a little in the service area, but these remain under the control of the State so that people who cannot afford basic services otherwise, can enjoy them.

People like you and I who can perhaps afford to pay a little extra can tolerate these things being outsourced. Consumers such as ourselves would benefit from the service/whatever in question being run like a business and not a charity. This is why we need to kull all poor people.. kull them all to death!!

Yes there is legislation - but who is enforcing it!!! At the moment if there are no services being provided, what benefit does the poor people have? And the cost of essential services are not directly recovered from the recipients, but cross subsidized by rich people through property rates, sliding scales on electricity and water use etc. And if you really analise most municipal budgets, you'll find a very disproportional salary component. And if you then look at the lack of service, what are these paid people doing???

No, if you outsource properly and manage the contracts competently, the costs and the performance can be linked and much better managed. But that is pie in the sky because most municipalities can not even submit a proper financial report to the Auditor General, never mind account for its spending. How are they going to manage outsourcing and contracts. But all mayors drive new cars and all municipal managers get their bonuses.

Why would anybody be concerned about service delivery?

 

[Pitbull]

I'll tell u the problem.

BEE

There is not enough qualified Black people to tender for those functions.... easy as that

 

[TELESPHORE]

I'll tell u the problem.

BEE

There is not enough qualified Black people to tender for those functions.... easy as that

SPOT ON!!! ^5

 

[supersunbird]

Some municipalities cant even manage the one most important things that even Telkom excels at... billing!

Now if a municipality cant even correctly collect the money due to them, how do you want them to be able to make any other important decisions like contracting stuff out?

 

[Xarog]

Well, if the current government wasn't in such a hurry to kick out all of the experienced civil servants in their employ so that they could fill those positions with previously disadvantaged staff, they wouldn't be having trouble to meet all their service obligations.