Sacramento really prefers to outsource. Sacramento already contracts out some other services. Streetscape maintenance, some off-street parking and a portion of street and alley maintenance is handled by private companies. According to the reports of the city’s finances and operations last year recommended that City Hall explore contracting out several services even though some stakeholders were strongly against form it.
Services that have talked in that report are parks maintenance, management of the city’s vehicle fleet and operation of the Convention Center, Old Sacramento, the marina and the zoo. Most of the business interests have also approached the city manager’s office with the idea of handling services in the downtown core. Most BPO companies want to outsource in Sacramento.
In a May 25 letter to city officials, Michael Ault, the executive director of the Downtown Sacramento Partnership, asked to discuss the possibility of his organization regarding some services tha they are offering such as security, garbage collection and parks maintenance. Ault’s goal is to enhance the levels of services that are currently offering and it has been threatened by the city’s budget deficit. His goal is to protect public and private investment downtown.
According to Ault letter that they believe that there might be several municipal functions that can be provided by DSP at a lower cost than they have currently being incurred by the city of Sacramento without a reduction in service levels . The political support for outsourcing at City Hall is mixed. Many members of the City Council are closely aligned with labor unions and, as a result, it could be unfavorable to enter into larger contracts that cut into union-represented workers.
At a May council meeting during which the golf contract was approved, Councilwoman Sandy Sheedy said outsourcing is not always what it seems to be and she also added that she wants to know how much they are going to save if they will be outsourcing. She is not sure if they can contract out everything just to control their budget. But Mayor Kevin Johnson’s office is in favor of outsourcing. He said he is open in the idea of exploring private firms taking on a bigger load.
There are a number of cities having success with contract services, and they may or may not be one in the future, that is according to R.E. Graswich, the mayor’s special assistant. Because of the dilemma they are currently facing regarding their budget, they would not be able to serve the public of the services that they really deserve if they will not be looking in the advantages of outsourcing. It can help a certain industry to lessen its operating expenses. This is the best way to save more money.
REFERENCE:
http://www.sacbee.com/2011/06/24/v-mobile/3724148/outsourcing-golf-course-maintenance.html
http://www.marketsandmarkets.com/PressReleases/back-office-outsourcing.asp
http://www.marketsandmarkets.com/Market-Reports/back-office-outsourcing-259.html
http://meyerfoundation.org/outsourcing09
http://business.ezinemark.com/outsourcing-back-office-solutions-empowering-the-customers-31ea30b8f68.html
