Niyamath Parveez

All about Outsourcing

Archive for November 9th, 2009

Can refuse turn down outsourcing?

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People do not like having to pay their taxes but it is fair to say that there are many benefits that come from it. One of the most important things that people receive from their tax payments is rubbish collection. No one wants to see refuse hanging around their home so are glad to pay for it to be taken away and disposed of properly. This is not in question but for the local council or government looking to provide this refuse collection, there are concerns about the value for money they are getting from carrying out this work.

Local councils and governments are no different from companies these days in that they need to examine each level of expenditure to ensure that value is being obtained. Even though the system may be working well, it is imperative to ensure that the best possible value for money is being obtained in every matter. This can lead to government bodies tendering projects out to outsourcing firms who promise to provide the service at a much lower cost. On one hand, this is of benefit to the local population as it is less of a drain on their tax payments, hopefully freeing up more money for other issues.

However, there needs to be a balance struck between cost and value. If the service is being delivered for a rock bottom price, is a rock bottom quality product going to be delivered as well? If the refuse collection is of a low standard or perhaps late or unable to handle everything that needs to be carried away, would the public be happy with this? They may be paying less for the service that is being provided but if the service is not good enough, many consumers would not be satisfied with the overall service.

This is the exact same conundrum that faces all businesses who are considering outsourcing as a solution to their financial problems. There is an obvious need to reduce the labor costs for any firm in these tricky financial times but for the end user or consumer, the bottom line is usually quality. Value for money is the most important matter for consumers these days and firms or local councils should never forget this.

This situation is the one that is currently facing the Sea Girt Borough Council who are attempting to greatly reduce their cost of refuse disposal. The current cost for the council is in excess of $400,000 but there has been an offer to do the same work for $120,000. As this price is nearly a quarter of the original price, it is evident why it would be so attractive for the council to consider. The council has also had to contend with the fact that the refuse department has been stretched in recent times so this solution may be absolutely perfect for their needs. As always when outsourcing rears its head, many people are concerned about the potential job losses and the impact it may have on the local community but these are issues which will need to be resolved in the future.

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Written by Niyamath Parveez

November 9th, 2009 at 2:15 pm