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Public sector must outsource

Alex Hawkes, Management Consultancy 26 Jun 2006

Public sector organisations should be outsourcing ­or at the very least thinking about it­ according to the finance director of business consultancy Capita

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In an interview with our sister title Accountancy Age, Gordon Hurst suggested that public sector organisations would be acting negligently if they were not even considering the prospect of outsourcing.

‘I think with outsourcing now pretty prevalent for 10 or 15 years in various forms, to some extent, if a public sector organisation isn’t even considering outsourcing, it is not going through all the options that it could and should be looking at,’ he said.

The market for outsourcing and consulting was also ‘going fantastically’, Hurst added.

He cited figures from research company Ovum suggesting a growth in outsourcing of 12% a year between now and 2009.

‘There is obviously a push from government and Treasury for the public sector to be well managed and efficient,’ Hurst said. ‘The public also wants to see public sector activities run better.’

Responding to media attacks on his company, dubbed 'Crapita' by some, Hurst shrugged off the criticism: ‘It’s something that goes with the territory.

‘If you are doing something which is big and high profile and new, and may not be that popular with the public, you are putting yourself up for that.’

In the interview, Hurst also discusses the remarkable rise of Capita, which was bought out of the Chartered Institute of Public Finance Accountants (CIPFA) in 1987.

For the full interview, go to www.management.consultancy.co.uk  

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