The New Public Management (NPM) and Outsourcing: An African Perspective

Abstract

The global financial economy crunch and increased demand for accountability by citizens have reignited the need for greater efficiency and value for money among public sector organisations (PSOs). The New Public Management (NPM), which requires market orientation and management practices from the private sector, is advocated to improve service delivery and public sector performance. Besides privatisation, outsourcing has been one of the vehicles PSOs have used to deliver products and services to citizens. However, outsourcing is a complex practice requiring a strategic approach.The formulation and implementation of outsourcing strategies to achieve the needed productivity among PSOs is very complex and challenging for public sector managers in developing economies, thus forming this chapter’s focus. Relying on existing literature, this chapter examines some of the strategies to manage outsourcing in the public sector in the quest to maximise social good. The management of outsourcing risk is necessary to ensure that PSOs in Africa achieve outsourcing objectives such as delivering quality products and enhancing organisational performance. The chapter uses a case study on outsourcing of vaccine management in South Africa to prove how effective outsourcing by public sector organisations in Africa can be. This chapter contributes to the practice and policy on outsourcing in Africa’s public sector.KeywordsOutsourcingPublic sectorNew Public ManagementManaging outsourcing riskPublic sector performance