Open Illinois.org

              When we talk about business competition, we usually think of the private sector. However, why not create competition between the public and private sector? How about government agencies competing with private business for who has the most cost-effective solution to meeting a need? The concept of competitve outsourcing is starting to gain popularity in states such as Florida, Virginia, and Utah. By contracting jobs to private firms, the state can save money and time.

      In order to outsource, the state needs to make an inventory of all its functions and activities. The federal government refers to this as the “Yellow Pages test” in which all agencies, services, and activities are placed into the two categories: inherently governmental or commercial in nature.  Once these services are identified, the state can implement a competitive sourcing process to hire a private business to deliver all commercial services.

    By privatizing commerical services, better quality is delivered at a better cost. Competitive outsourcing would also allow for more transparency.Implementing an online bidding process would allow the public to know which government services are being outsourced as well as how much money is being saved. Having a standardized process of procuring and managing contracts ensures accountability and allows the state to focus on inherently governmental activities that cannot be provided by the private sector.

 Mayor Daley has even made some efforts of outsourcing government services such as privatizing parking meters and parking garages in downtown Chicago. However, continued competitive outsourcing is needed in Illinois. Next time you are frustrated with late mail or held up at the toll booth,  ask yourself if the government should be responsible for these services.