Title

BUSINESS

Taking the first steps towards re-imagining our services

Until recently, re-procurement of services was the default approach. 'Now we are seeing an increasing appetite for partial or complete insourcing of functions', says Sean Hanson.

As numerous long-term outsourcing arrangements with private sector partners will reach expiry over the coming years councils, government agencies and departments are considering their future sourcing options.

The upcoming expiry of many PFI contracts is one example of this.

Some councils are also reassessing the options regarding their long-term strategic partnerships covering services such as revenues and benefits, IT, planning and procurement.

Until quite recently, re-procurement of services was the default approach. Now we are seeing an increasing appetite for partial or complete insourcing of functions.

This shift is driven by a range of factors. Greater flexibility in service delivery, expectations of lower delivery costs or greater service quality feature prominently. Equally, local authorities are reappraising the benefits of having skills and capability under direct control in a time of profound change. Access to innovation or local skills is a further consideration for many.

We have seen that the organisations considering this change and bringing services in-house, whether partly or fully, need to think through the associated risks and challenges. It requires organisations to take a carefully considered, transformational approach to service planning and transition that looks intelligently at the overall impact on the organisation in terms of its systems, processes, technology and supply chain. Further complications accrue when some of the services under consideration are shared with other councils, or where private partners deliver services remotely.

Local Partnerships has been supporting councils to think through the implications of the various sourcing options across a wide range of sectors, from facilities' management to waste delivery to procurement services. We support local authorities in making informed decisions by helping to identify the options, working with stakeholders to obtain consensus as to the preferred way forward and subsequently help with planning and implementation of the new way of working.

By aligning our approach to wider best practice, especially the Cabinet Office's Sourcing Playbook which provides key policies and guidance for choosing the best model for delivering public services, we provide councils with a structured approach to help ensure that changes to services are designed to succeed.

@LP_SeanHanson

• localpartnerships.org.uk

• Sean.Hanson@localpartnerships.gov.uk

BUSINESS

Pulling infrastructure delivery's hidden lever

By Mark Robinson | 08 August 2025

The way procurement is delivered is much more than a procedural step – it is a strategic tool, says Mark Robinson

BUSINESS

Putting procurement spending to the test

By Mo Baines | 08 August 2025

Mo Baines sets out the questions public contracting authorities should ask before deciding on a delivery model for services, using a Public Interest Test

BUSINESS

Barnet has housebuilding nailed

By Cath Shaw | 08 August 2025

Barnet is one of the few London boroughs to hit its housing growth targets and its £8bn Brent Cross Town scheme is delivering one of the most ambitious devel...

BUSINESS

Not zero: Core cities admit they will fail to hit ambitious climate targets

By Dan Peters | 07 August 2025

Core cities have called for billions of pounds of investment to transition to net zero after admitting they will fail to hit their ambitious targets.

Popular articles by Sean Hanson