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Outsourcing IT in the Public Sector

McLean Report: Research Note


While outsourcing in the private sector has seen big developments and even bigger debates, there is no denying that most public managers too are often faced with deciding on what and how to outsource. But outsourcing is a different ballgame for public managers. Here is a guide for public managers on outsourcing IT.

Different Strokes

Public managers' IT outsourcing decisions are very different from those of their private sector counterparts.

  • Vendor selection, budget approval, and most internal process are very 'bureaucratic.'
  • Private sector managers focus on service and relationship management with partners, while public sector managers are more inclined towards a "command and control" type procurement process.
  • Procurement cycles are long, so whatever public managers choose, they are stuck with it for a really long time.
  • Paucity of IT experts, coupled with lengthy hiring processes and...
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