Dáil Éireann Debate, Wednesday - 22 January 2014
26. Deputy Lucinda Creighton asked the Minister for Public Expenditure and Reform the total amount of outsourcing that has been achieved in his Department since March 2012; the names of the outsourcing companies that have been involved; the total savings achieved; and if he will make a statement on the matter. [2697/14]
View answerThe Public Service Reform Plan sets out a commitment to evaluate alternative models for the delivery of services in a more cost effective and flexible approach, with a focus on customer service improvement. In July 2012, the Government agreed a range of actions aimed at achieving a focused and integrated approach to external service delivery of non-core processes with the objective of reducing costs and focusing staff resources on priority areas.
The Deputy will be aware that shared services is a key area of reform being led by my Department. In this regard, each appraisal for shared services carried out by my Department evaluated the existing in-house service, the external delivery option and whether the service can be retained in-house but with business process improvements. Each decision took into account a number of factors, including overall cost, quality of service, effectiveness and the public interest. A Financial Appraisal was prepared in respect of the Human Resources to become a shared service which was implemented providing services to 13 organisations and a further 40 in 2014. Forecasted savings of €12.5m per annum are estimated with a reduction of 149 staff. A Business case for a Pensions Shared Services Centre is well advanced and expected to save €5.6m per annum with a reduction of 56 staff. Non-financial benefits including improved efficiency, consistency and service delivery are also expected.
Within the Vote Group for which I am responsible, the Office of Public Works is involved in outsourcing much of its work. A significant proportion of the workforce is dedicated to managing the outsourced service delivery to ensure the provision of value for money, quality services to client Departments and Agencies and to ensure all of its actions are compliant with legislation, regulations and good governance. The Office of Public Works also provides a shared service in the area of property management and property maintenance to central Government Departments and Agencies. It is currently responsible for the management over 2,000 properties. The OPW routinely commissions external service providers to deliver these services.
In addition, the OPW invites proposals on an annual basis from event organisers for high profile Heritage sites to maximise the use of these sites and to enhance the visitor experience. This has been extended to include other commercial activities on OPW sites in 2014. A number of proposals are being considered currently. The OPW was one of a number of bodies requested to prepare an External Service Delivery Plan in 2013. That Plan has identified a number of areas where further opportunities for External Service Delivery can be explored and these are being considered for implementation in 2014. This Plan is due to be considered by Government shortly.
The Public Appointments Service outsourced Call Centres for the Garda Trainee recruitment campaign and the Internal Promotion campaigns at HEO and AP level being run for other Departments/Offices in the civil service. Following two separate procurement exercises the contract for these projects were awarded to the company "Call Management". This part of the process was outsourced in order to allow staff to deliver on a large number of campaigns at the same time and deal with very large potential candidate pools. It was considered more efficient to engage external call-centre support rather than recruiting temporary staff to deal with short intensive peaks in activity. In addition, my Department will be preparing its own benefits-driven external service delivery plan during 2014.
