What is outsourcing of public procurement?

Outsourcing of public procurement is a general term used to describe a situation where an enterprise or organization purchases public procurement services from an external company. Outsourcing has existed as a business model for a very long time, but in the middle of the 90s it has acquired acquaintances because large companies began to reduce well -paid positions in favor of outsourcing administrative functions for companies based in other countries. The primary goal of outsourcing is to improve efficiency and reduce administrative overhead costs. The methods and processes used differ slightly according to industry, but largely are relatively general. Many companies accept a gradual access to outsourcing, which allows the company to award public procurement to complete all transactions below a specific threshold without the client's consent. Any negotiations or contracts for more than a specific dollar may be completed by a client with the help of specialists in public procurement, as needed.

In the search for an outsourcing company, there are three areas that should be part of the review process: payment method, accurate services to be provided, and metrics to evaluate performance. Companies awarding public contracts for companies located abroad must examine legal contractual obligations, operating hours and managerial entry or access. The selection of a company for awarding public procurement should be completed through the process of offering an open contract. The quality of gentle answers can be very revealing, as this type of work is the primary function of the company for public procurement.

In outsourcing, two different payment methods are commonly found: percentage of purchases or lump -sum rates per order. The percentage of purchases is invoiced on the basis of total expenditure processed through a company company. Invoice isUsually presented every month, indicating the value of all processed orders, the total amount of savings achieved and the amount due for the services provided. The spell rate is based on a clear volume of transactions. Both methods can be manipulated to inflate the invoice values ​​and must be carefully managed.

The list of services provided by the Public Services Company should be clearly defined. In this type of agreement, the terms of payment, reporting requirements, escalation procedures and the level of services are important. Make sure they are included in the contract at a very detailed level. The metrics provided by the company should be associated with contracting services. These values ​​are used to determine whether an outsourcing company complies with contracts and services.