The Reasons Contracting Out is Flawed

The Reasons Contracting Out is Flawed

  • The cost is greater than advocates claim because indirect and "hidden" costs of service delivery are ignored.
  • The quality of services deteriorates as profit becomes the prime motivation in service delivery.
  • There is an adverse economic impact on communities with historically disadvantaged groups bearing a greater burden.
  • Opportunities for corruption, such as bid-rigging, bribery and kickbacks, are created.
  • There is an increased dependency on contractors as in-house expertise is reduced.
  • Flexibility and control are diminished by the terms and conditions of the contract.
  • Public accountability is diminished because citizen complaints cannot be directly addressed.
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