Outsourcing in Public Sector of Vanuatu- myassignmenthelp.com

Question: Discuss about theOutsourcing in Public Sector of Vanuatu. Answer: Thesis Statement- The advantages and disadvantages of outsourcing and contracting out are discussed in the essay. Introduction The islands of Vanuatu are a group of 80 islands located in the South Pacific Ocean. The island of Efate is the capital island of Vanuatu and it is the main economic center. The island was under British and French rule till the year 1980. Vanuatu has 6 provinces which are run by the two Municipalities and Councils of the government. The infrastructure of the islands is comprised of three international airports, national and municipal roads and the economy of the country has shown a steady growth from the year 2004 to 2009. Outsourcing and contracting out in the public sector plays an important role in the economic growth of the islands (Gobble 2013). Discussion The outsourcing in the public sector of Vanuatu can be understood from its National Policy Framework. Since its independence in the year of 1980, the government Vanuatu is playing a pivotal role on investing in several projects for services and development in the county. But the company could not be successful in its endeavors and thus the government adopted a National policy in the year 1991 to undergo national reform. The government has outsourced the development of infrastructure by adopting a Priority Action Agenda Policy since the year 1991. The Impact of Contracting Out and Outsourcing In The Public Sector Of Vanuatu Outsourcing encourages a competitive private sector to develop in the islands of Vanuatu. The level of requirements for subsidy for public utilities is minimized when the public sector contracts out. Outsourcing helps infrastructure and support services to be available to all industrial sectors of Vanuatu. The process of outsourcing makes all utilities and services in the island to meet quality standards and make them priced competitively. Outsourcing has been used for the development of ICT technology, roads, airports, ports and the master plan for infrastructure development has enabled seeking of financial assistance from Donors. Five reasons why Government opts for Outsourcing in the Public Sector in Vanuatu 1) Outsourcing in public sector in Vanuatu helps in the development of electricity sector in the islands. The urban areas in the island have access to electricity and only 27 % of the inhabitants of Vanuatu have access to electricity. Funds from international countries help in the development of wind, hydropower and geothermal power in Vanuatu. The public sector and government is committed to develop the electricity sector in Vanuatu and achieve the set targets by the year 2020 with a public-private partnership. Outsourcing helps in supply of electricity in Port Villa, Tanna, Luganville and East Malekula (Satterthwaite 2015). 2) In several parts of Port Vila and central areas of Mele, collection of solid wastes is outsourced by the public sector of Vanuatu. This responsibility of collection of solid wastes is outsourced to a private company by the public sector (Woodruff 2014). 3)The supply of water to Port Vila has been outsourced by the public sector of Vanuatu to a private company Unleco Vanuatu and the public sector has also outsourced the projects for development of the infrastructure of water to the islands of Vanuatu and Blacksands area(Poustie and Deletic 2014). 4) The market of telecommunication was open to competition by the amendment of Telecommunications Act of 2007.Digicel and Pacific Data Solutions are among the private Companies which provide telecommunication services in the islands of Vanuatu. Outsourcing and collaboration between public and private enterprises have led to the development of telecommunication sector in Vanuatu and has also made the services of telecommunication affordable for the inhabitants of Vanuatu. The advantage of outsourcing by public sector of Vanuatu is that since 2013, several projects of telecommunication was outsourced to the Global Symposium consultation of Warsaw and Poland. Till 2012, the services of the telecom sector were provided to islands of Vanuatu by France Telecom. Since the year 1992, after privatization of the telecom sector, France Telecom had exclusive license to provide and improve the telecom sector in the island of Vanuatu (Schniederjans, Schniederjans and Schniederjans 2015) 5) The outsourcing by the public sector of Vanuatu helps to improve the tourism sector. There has been development of an international airport which can accommodate aircraft from Asia and Europe. The Japanese government has given loan to government of Vanuatu for Ifira Port Development and Services (IPDS) and development of transportation networks. Outsourcing in public sector of Vanuatu helps to boost tourism which improves the Gross Domestic product (GDP) of the country (Cheer, Reeves and Laing 2013) Five disadvantages of outsourcing by public sector of Vanuatu 1) Outsourcing can lead to loss of private data and confidentiality. The public sector should intervene and manage sensitive data which can be lost due to outsourcing. 2)Operations of the outsourced projects cant be controlled by the public sector and outsourcing can lead to the delay of deliverables and public sector of Vanuatu will lose control of management of several functions of business in the outsourced projects often leading to mismanagement and projects may not be delivered on time (Dinu 2015). 3) The quality of the outsourced projects may not be satisfactory if the projects are outsourced by public sector of Vanuatu to Companies who are not experienced enough to handle outsourced activities and lack the technical know-how of the projects. 4) Outsourced vendors may be handling multiple projects simultaneously and this is a disadvantage of outsourcing by public sector of Vanuatu. Focus may be reduced from the project which the public sector has outsourced because vendors handle multiple projects at a time. The lack of focus on customers can make the outsourced project unattractive (Dolgui and Proth 2013). 5) Outsourcing by public sector of Vanuatu can often be associated with hidden costs which the public sector may not be completely aware of while singing the outsourced projects. Conclusion Though outsourcing by public sector of Vanuatu has several advantages like sharing of critical risks of the outsourced projects by the public sector with the vendor who takes responsibility of the project and outsourcing is often cost effective, still the public sector should be careful while choosing vendors. The disadvantages of outsourcing can be minimized if the projects are outsourced by public sector of Vanuatu to vendors who have the technical know-how and expertise to handle critical projects. Reference Lists Cheer, J.M., Reeves, K.J. and Laing, J.H., 2013. Tourism and traditional culture: Land diving in Vanuatu.Annals of Tourism Research,43, pp.435-455. Dinu, A.M., 2015. The risks and benefits of outsourcing.Knowledge Horizons. Economics,7(2), p.103. Dolgui, A. and Proth, J.M., 2013. Outsourcing: definitions and analysis.International Journal of Production Research,51(23-24), pp.6769-6777. Gobble, M.M., 2013. Outsourcing innovation.Research-Technology Management,56(4), pp.64-67. Poustie, M.S. and Deletic, A., 2014. Modeling integrated urban water systems in developing countries: case study of Port Vila, Vanuatu.Ambio,43(8), pp.1093-1111. Satterthwaite, K., 2015. Seafront upgrade in Port Vila, Vanuatu. InAustralasian Coasts Ports Conference 2015: 22nd Australasian Coastal and Ocean Engineering Conference and the 15th Australasian Port and Harbour Conference(p. 796). Engineers Australia and IPENZ. Schniederjans, M.J., Schniederjans, A.M. and Schniederjans, D.G., 2015.Outsourcing and insourcing in an international context. Routledge. Woodruff, A., 2014. Solid Waste Management in the Pacific: Institutional Arrangements.