Small and medium enterprises have started offering outsourcing business to the public sector as well. With massive pressure on public sectors, using outsourced services has become a vital necessity for them. Therefore, it is high time the public sector motivates and invites small and medium enterprises to bid. If outsourcing succeeds in generating average savings of about 22% then it is considered a profitable venture. However, while outsourcing, one should address the following two issues—
- Adequate competition
- Commitment of professionals conducting the work.
Competition is highly essential. To provide effective services with superior efficiency, there should be a playing arena that can easily hold many small and medium businesses. The many would not be able to unrealistically bid for outsourcing services while the few can. Therefore, there should be additional unbundling of such services in order to generate greater competition which as a result, would lead to novelty and efficiencies.
Small and medium enterprises also cannot afford a high staff turnover. Therefore, SME outsourced service providers should be more cautious while retaining their talent. In order improve the quality of service, once should totally focus on employee engagement rather than overlooking it. Employee engagement depends on effectual performance monitoring that is determined by performance indicators. Employee engagement also depends on agreeing assessable results, which are known for adding value to the users of the specific service along with communities.
The knowledge and development offered by outsourced service providers acts as the deciding factor to determine if the outsourced service will prove to be better. Motivating, inspiring and supporting the employees can be accomplished only with the help of a robust, well conceived and well implemented in-house communications agenda.
Novelty and modernization helps in creating better competence in public services and it is the result of greater competition. Therefore, it needs to be accepted that innovation or novelty, like any other invention, is likely to come from anybody working in an organization. At the same time, it should be kept in mind that inspiring and motivating people to put forward their ideas is not a simple task. They have to feel encouraged so as to think about prospective developments or improvements. They should be motivated to such an extent that they feel inspired and confident enough that their suggestion will be taken sincerely and with seriousness. They should also be adequately encouraged so that they can willingly work on developing and implementing the idea along with others. The groundwork upon which this rests is a sturdy network of internal communications that welcomes dialogue, recognizes innovation and rewards outstanding work, thereby strengthening shared values of the organization.
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