An examination of the barriers in the effective use of outsourcing in the public sector.
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Date
2020
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Abstract
The government of South Africa has strived to centralize the procurement of goods and services, to
address inefficiencies in the outsourcing of non-core activities in the public sector. This is
deemed necessary to improve the efficiency of outsourcing processes in the public
sector. Public sector outsourcing has faced various challenges, including unethical practices
such as corruption, fraud and price inflation, resulting in inefficiency and increased
operational costs. This study examined the barriers facing the outsourcing of functions at the
South African Social Security Agency, Umzumbe Local Office. The design of this study was of an
exploratory nature and the researcher used a qualitative approach and a non-probability, purposive
sampling method. The sample size for the study comprised forty-one employees from the South
African Social Service Agency, in Umzumbe Local Office. Primary data was collected via
in-depth face-to-face interviews with six senior government officials, and focus group discussions
involved thirty-five discussants. The research instrument used for the study was an interview
schedule. Data was analysed using content analysis. The findings of the study reveal inefficiency
in daily operations, a lack of accountability, poor communication and proper planning,
non-compliance with supply chain laws, poor monitoring and evaluation mechanisms, and a shortage of
capable human resources. As such, the outsourcing of activities in the public sector does not
achieve efficiency in its operations. The study recommends the hiring of skilled personnel in the
SCM unit, that the department must work closely with law enforcement agencies, and that a
consequence management approach be adopted to deal with inefficiency in the procurement
unit, unethical practices, non- compliance with SCM laws, and poor monitoring and evaluation
mechanisms. The study contributes to the existing body of knowledge on the barriers facing the outsourcing of functions in the public sector.
Description
Masters Degree. University of KwaZulu-Natal, Pietermaritzburg.