Outsourcing Article for Public Sector Magazine

Outsourcing Article for Public Sector Magazine

Key Strategic Decision

Outsourcing is a key strategic decision for organisations aiming to enable more efficient operation through a focus on core areas, while leveraging capabilities and scale of specialist service providers to effectively operate non-core areas.  It is a significant event for any organisation given its focus on improving effectiveness and efficiency of its underlying operations and more accurately seen as the beginning of managing the outsourced activity in a different way than the end of managing the same activity. 

Evolution of Outsourcing as a Policy in Irish Public Sector

While the outsourcing industry (incl. BPO & ICT outsourcing) continues to expand and evolve globally, traditionally outsourcing has not been a common feature of delivery of public services in Ireland.   However, the recent economic downturn and EU/IMF Programme of Financial Support for Ireland have increased pressure on the public sector to maximise efficiencies while controlling cost base, resulting  in the door being opened by the Croke Park Agreement (subject to restrictions) and, ultimately, to increased public sector outsourcing and shared services as part of the current Government's Programme for Government & publication of the Public Service Reform Plan by Minister for Public Expenditure & Reform, Brendan Howlin.

Current Developments & Challenges 

While the policy shift has not yet resulted in a significant increase in volume of outsourced activity, the reform agenda is definitely active as evidenced by recruitment of Mr. Kevin Daly as Commercial Delivery Manager and Ms. Hilary Murphy-Fagan as Shared Services Transformation Manager in Department of Public Expenditure & Reform (Department) with a remit to "oversee development and implementation of a strategy for external service delivery and provide subject-matter expertise in the area".   The Government is due to decide on public sector external service delivery in Feb 2013 on basis of a review underway in the Department's Reform & Delivery Office with the aim of developing a shortlist of services with potential for external service delivery while the key sectors of health, education, local authorities and justice have been required to draw up plans for external service delivery.  An eGovernment strategy and Cloud Computing Strategy for Public Service were launched earlier this year providing a platform for greater ICT outsourcing.

Obviously, public sector outsourcing is a hot topic and any increase will face a number of challenges, including the restrictions in the Croke Park Agreement, opposition of public sector unions, political will and potentially certain media and public criticism.   As such, it is important that key public sector outsourcing arrangements are effectively managed to avoid the type of debacle which results from poor planning and management such as failure of the G4S outsourcing contract for Olympic security services which garnered extensive media criticism in the UK recently.

What can ByrneWallace offer?

ByrneWallace understands that a successful outsourcing relationship is by its nature long-term and evolutionary requiring a close working relationship between the parties and that, to facilitate a workable relationship between customer and service provider it is crucial that process and stake-holders are managed effectively by the right teams of internal management and external advisors and that, to achieve a mutual win-win, the contract negotiated is clear, balanced and flexible with realistic service levels & cost provisions, effective governance and reporting provisions and adequate exit and transition planning.   

 ByrneWallace Outsourcing Group

In particular, ByrneWallace Outsourcing Group has extensive experience in advising public & private sector clients on outsourcing and shared services needs and negotiating outsourcing arrangements.  It draws together the extensive expertise, industry knowledge and business acumen of experienced lawyers in our key practice areas, including Corporate/Commercial, Procurement & Regulatory, ICT/Data Protection, Employment, Property, Banking and Tax, to ensure that our clients receive a seamless, comprehensive service.  We work closely with the client to provide a cradle-to-grave service, from understanding key drivers behind the outsourcing decision, assisting in selection and procurement and playing a pro-active role in driving the deal, advising on industrial relations issues and project-managing the process and key relationships, right through to advising on disputes, exit arrangements, training, reviews and contract re-negotiations.  We liaise closely with industry, regulators and other stakeholders to facilitate useful contacts and exchange of ideas ensuring that we stay ahead of the curve on market developments and best practice.

ByrneWallace Public Sector Expertise

ByrneWallace has an extensive public sector client base, encompassing statutory bodies, civil service departments, local authorities and semi-state bodies, and is independently recognised as one of Ireland's leading providers of legal services to the public sector, including by Legal 500 Directory, which consistently ranks ByrneWallace as one of the three top-tier Irish firms in this category.   Our resources, expertise and understanding of the unique challenges of the Irish public sector means that we are highly qualified to provide the comprehensive legal service required by public sector bodies engaged in outsourcing of services. 

For further information, please contact:

Gillian O'Shaughnessy, Corporate/Commercial Partner & Head of Outsourcing Group

Michelle Ni Longain, Employment Partner & Head of Public Sector Group