The Pros and Cons of Contracting Out In The Public Sector Essay

Advantages and Disadvantages of Contracting Out In The Public Sector Introduction Many public agencies in recent years have followed the trend of privatization, or contracting-out. Activities and functions that were once performed, or services that were once provided, by public employees are now being performed by private sector employees (Lyons). Vehicle towing, health services, police protection, and solid waste collection are among the many services and functions that government has contracted out. A survey in 1995 that was sent to mayors or city managers of America's largest cities (based on population) revealed that only three of the 66 cities that responded to the survey had not privatized any city services. http://fpac.fsu.edu/parbaby/pdf/1997/janfeb/dilger.pdf This trend translates to not only an administrative concerns but a staffing concern faced by many managers. Privatization As A Staffing Concern Replacement Of Civil Servants By Contract Employees Privatization of governmental functions has a direct relationship with the number of contract employees in government and an inverse relationship with the number of civil servants. As privatization has become more acceptable, contract employees are being hired to do the jobs, thus, replacing civil servants. As indicated by Gregg Lodan, Assistant Administrative Analyst for the City of Long Beach Community Development Department, approximately 20% of the department’s employees are contract employees, as opposed to approximately 5% three years ago. He stated that other departments and other cities might have even higher percentages because functions of whole departments or individual functions are now being considered for privatization (Lodan). In India... ...3. International City Management Association. Service Delivery in the 90's: Alternative Approaches for Local Governments: Washington D.C.: International City Management Association, 1989. Lodan, Gregg and Jesus Gomez. Personal interview. November 18, 1998. Lyons, James. "Contracting Out for Public School Support Services." Education Urban Society, Feb. 1, 1995: 154 Pinchot, Gifford, and Elizabeth Pinchot. The End of Bureaucracy & the Rise of the Intelligent Organization. San Francisco: Berrett, 1993: 180. Rehfuss, John A. Contracting Out in Government. San Francisco: Jossey, 1989 Wolfe, Michael N. "That's Not an Employee, That's an Independent Contractor." Compensation & Benefits Review, July-August, 1996: 60-64. Nigro, Lloyd G., and Felix A. Nigro. The New Public Personnel Administration. Itasca, Illinois: F.E. Peacock Publishers, Inc., 1994.