Government Bodies Oursourcing IT, HR, Customer Contact Centre Functions
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Leon Perera questioned how many government bodies have outsourced IT, HR, customer contact centres, or other functions to private shared service providers and whether agencies consider salary comparisons with civil servants before outsourcing.
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Heng Swee Keat explained that outsourcing is done to achieve efficiency, economies of scale, and to leverage private sector expertise, allowing agencies to focus on core public service delivery.
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Outsourcing is typically done through open tenders evaluated on quality factors like track record, innovation, and technical competence, alongside price competitiveness.
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The government does not routinely scrutinise the salary terms of outsourced suppliers but expects compliance with labour laws, and has committed to using providers paying according to the Progressive Wage Model for certain sectors.
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The approach aims to balance efficiency and quality while ensuring fair labour practices, with agencies deciding on outsourcing based on operational needs and value for money.