Sourcing a Multi-Sector Workforce
Program Research Project
ARMY WAR COLL CARLISLE BARRACKS PA
Pagination or Media Count:
The Department of Defense DoD has pursued competitive sourcing initiatives to reduce costs, improve services, and to insure the government does not usurp the private sector in performing government functions. Recently, the tide has shifted from outsourcing to insourcing as abuses and cost overruns have come to light. Outsourcing has provided both the government and the private sector a viable sourcing option promising efficiencies and quality improvements. However, it is clear that there are important reasons to retain in-house some functions that are inherently governmental. The principles of transaction cost economics such as asset specificity, service complexity, uncertainty, frequency, and operational necessity have further informed the discussion on what services would make good candidates to outsource and what services managers should retain in-house. Taking this into consideration as well as the multiple risks associated with contracting functions, DoD has adjusted policy with greater emphasis on insourcing. With this new direction and with a balanced approach, program managers and leaders can potentially gain efficiencies, increase quality, and enhance mission success by effectively utilizing a multi-sector workforce.
- Economics and Cost Analysis