The drive to outsourcing is an alluring one with promises of lower costs, fewer workforce issues and risk transference. However, it is important to realise that there are a few situations in which it may be more advantageous for a local government to deliver waste services from in-house resources.
When the community is small and the volume of waste generated is low, it may be more cost-effective to have an in-house team handle waste collection and disposal.
If the local government has the necessary equipment and personnel to provide waste services, it may be more efficient to deliver these services in-house rather than contracting out to a private company.
In cases where the local government has specific regulations or policies in place for waste management, it may be easier to ensure compliance by delivering services in-house.
If the local government is able to secure funding or grants for waste management programs, it may be more beneficial to use these resources to hire and train an in-house team rather than paying a private company.
These are also the other side of the coin to consider when deciding whether the advantages of outsourcing can be realised.
How does your local council assess whether the in-house opportunities are worthwhile?
Lytton Advisory 