Outsourcing in the era of austerity - diminishing returns?

The FT today carries an interesting report on ‘growing scepticism’ in central and local government over the potential savings to be achieved by outsourcing of services, despite the worst efforts of the public sector industrial complex. David Hall, director of the Public Services International Research Unit at Greenwich University, says: “What is interesting is that despite the biggest austerity package in postwar history the outsourcing route has not been seen as a way of delivering significant cost savings. http://www.ft.com/cms/s/0/b01353c2-27d0-11e1-9433-00144feabdc0.html#axzz1kOo6dZTF