ISS identifies trends in public sector services outsourcing

by Brianna Crandall — September 19, 2014—How can the public sector maintain a high level of welfare services to an aging population with more individual demands — at lower costs? This is the key question in a new white book called ISS 2020 Vision — Future of Public Sector Outsourcing, published by global facility services provider ISS in cooperation with Copenhagen Institute for Future Studies, Denmark.

The publication is based on interviews with a wide range of experts from around the world including representatives of the public sector, research institutions and outsourcing companies.

The white book identifies a number of relevant major international trends that affect the future of the public sector and outsourcing.
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According to ISS’ Group CEO Jeff Gravenhorst, there is an increasing need to make the service delivery in the public sector more efficient with lower costs. “In some developed countries, the public sector is now responsible for up to half of the domestic economic activity, and it will play an even more important role in coming years,” said Gravenhorst.

“With these trends in mind, it is concerning that the interest in efficiencies and value for money seem weaker in the public sector than in private companies. One example is that the myth that hours spent on a specific task equals level of quality is widespread in public sectors around the world.

“We, as outsourcing services providers, would very much like to play an active part in addressing the challenges societies face. Not just with concrete service solutions, but also by sharing research and know-how. Service and outsourcing are our core competencies, and we do care about the future of the societies where we operate,” Gravenhorst said.

On the basis of research, the white book identifies a number of relevant major international trends that affect the future of the public sector and outsourcing, including demographic bulges, growing customer expectations, personalization of services, and a shift in the role of the public sector from provider of services to commissioner and facilitator with a number of providers.

It also lists a number of strategic issues, which challenge the public sector and are forecasted to increasingly do so in coming years, such as: the need to do more with less, balancing automation with “the human touch,” and breaking down organizational silos.

The conclusions of the report were presented September 15 by representatives for ISS and Copenhagen Institute for Future Studies at the International Facility Management Association’s (IFMA) World Workplace Conference and Expo 2014, in New Orleans, Louisiana.

ISS 2020 Vision — Future of Public Sector Outsourcing is available on the ISS Web site.