ABSTRACT

Organizations have elected for outsourcing in both the public and the private sectors where the economic climate, through a period of recession, has demanded an overt focus on reducing running costs. In the public sector, accountability and the continuous pressure to demonstrate 'value for money' to the tax-payer has been the driving force. In the private sector the driver has quite simply been one of fundamental survival in an increasingly competitive environment. The primary motive for choosing outsourcing is to reduce costs, but in so doing organizations have also been able to rationalize their personnel and focus their energies and skills of that key resource into their core business - Le. what they are good at, what they know most about, and what is critical to the success of the business.