Archives for June 14th, 2002

CONTINUED GROWTH IN OUTSOURCING

Headlines, PublicNet: 14 June, 2002

Facilities management companies expect a continuing growth in public sector business. The UK Facilities Management Market Report 2002 identifies key areas of growth in demand for outsourced FM services as NHS Trusts, primary and secondary education and local authority leisure services sectors. It is estimated that in 2001 the market for outsourced FM across the public and private sectors was worth around 11.18bn pounds, and is expected to show steady underlying growth over the next 3 years.The key aspect to Facilities Management outsourcing has been the move towards the provision of non-core services under ‘one stop shop’ or ‘bundled’ service delivery and Total Facilities Management contracts, where the management element is outsourced together with service delivery. This is leading to the outsourcing of increasingly larger and diverse multi-disciplinary services. The PRIME contract between the Department of Works and Pensions and Land Securities Trillium and the STEPS contract between the Inland Revenue/HM Customs and Excise and the Mapeley consortium are examples of .the trend in property services.

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LOOSENING THE GRIP OF WHITEHALL AS POWER PASSES TO COUNCILS

Headlines, PublicNet: 14 June, 2002

The Government’s shift away from central control and towards a new localism in public services is taking shape in local government on similar lines to changes in the health service. Ed Balls, Chief EconomicAdviser at the Treasury, told a Chartered Institute of Public Finance and Accountancy conference why power was being devolved and how it would affect councils. Publication of the draft Local Government Bill reveals how new localism is to be put into effect.The old-style centralization and command and control approach to delivering public services no longer works because of a combination of increasingly demanding consumers, information technologies, greater competition, a premium on skills and innovation, a wide-ranging media, and varying local needs.

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