Conclusion: This month has seen an increase in activity for public sector outsourcing. While reports this year have flagged sector growth, with more diverse offerings and a greater uptake of smaller providers, difficulties with contract performance in this area are still clear. While the size and complexities associated with these projects can present serious problems, they are aggravated by issues that are especially prominent in the public sector. For instance, running critical functions such as financial management, customer service and human resources, on disparate, large or obsolete systems, can result in a wide range of vulnerabilities for government agencies. These can interfere with business continuity, pose security threats, hamper disaster recovery or prevent appropriate skills development. As vendors evolve to offer more specialised services that cater to customers’ requirements, it is important for the public sector to continue to review and analyse its outsourcing projects because of serious consequences associated with catastrophic failures, outages and exploitation of government systems.

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Irene Pimentel

About The Advisor

Irene Pimentel

Irene Pimentel is an IBRS analyst who focuses on news and information on the global IT Outsourcing market. Irene provides IBRS clients with up to date information on all outsourcing deals that are taking place helping our clients understand who is winning business in what markets. With over 10 years experience as a management consultant, Irene has worked with some of Australia's largest blue chip companies and public sector organisations. Irene has also worked as a research manager for an IT sourcing consultancy, providing clients with targeted intelligence and advice for their specific IT sourcing transactions.