The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Outsourcing tips from the public sector

Corporates could learn a lot from the public sector about how to manage outsourcing, according to a paper published by the CFO of IT services company Steria.

CFO Davinder Ahluwalia says that his work with the UK government has shown him how years of public scrutiny have turned state departments into innovative outsourcers.

The public sector is more likely to focus on the relationship rather than the contract, to be flexible throughout a programme, to engage in open book accounting and to use shared risk and reward structures.

?For years there has been something of an ongoing prejudice that the public sector is not as quick to adopt new working practices as the private. In truth, the public sector is often more advanced,? says Ahluwalia.

?The public sector has had no choice. Accountability has always been one of the highest priorities when it comes to the spending of public funds. But as the private sector develops a similar dependency on external service provider relationships, it's finding that it, too, needs to ensure the same high levels of accountability and transparency.?

Ahluwalia recommends that corporates should work on principles of openness and flexibility with their outsourcing partners before contracts are even discussed, should set payment levels for specific results, and should have access to service delivery costs to build up trust with the supplier.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree