Essential public services should prioritise people, not profit

Central government is proposing the largest wave of insourcing in public services for a generation, prompting many councils to reassess how they deliver services. But how do insourcing and outsourcing compare when it comes to getting the best results for your community?

For councils looking to manage their services directly, insourcing can offer significant societal benefits. It allows for greater control over service delivery and quality, enabling a more personalised approach that can be tailored to the specific needs of local communities. It also offers the potential for cost savings, freeing up valuable resources for priority areas, bridging inequalities within our communities.

That said, insourcing can bring challenges, including high upfront costs and limited access to specialised expertise and resources. It’s not always the easiest path to navigate, and to work effectively, strong governance needs to be in place for complex operations.

On the other hand, outsourcing can provide councils with the specialist knowledge required to deliver services more efficiently. Fixed contract costs with private providers offer financial predictability, shifting some of the fiscal risks onto the provider. However, outsourcing can also reduce local authorities’ flexibility, making it harder to respond to global events or changing legislation in a timely manner. The complexity of contract management can lead to costly renegotiations, placing a strain on local authority resources and finances.

For councils seeking a more balanced approach, Norse Group’s partnership model offers an alternative that combines the best of both worlds. It brings together the commercial benefits of outsourcing with the flexibility of insourcing, allowing councils to retain control and adapt quickly without the need to renegotiate complex contracts. This joint venture model also enables councils to generate income through external commercial streams, with profits reinvested directly into the community.

The partnership model places local people at the forefront. By prioritising job creation and stability, employee wellbeing, and career development through opportunities such as apprenticeships, it helps build a stronger, more resilient workforce. In addition, the model focuses on supporting local small and medium-sized enterprises (SMEs), helping to strengthen the local economy while delivering long-term social value and sustainability.

At its heart, Norse Group’s partnership model is rooted in community values. We believe essential public services should prioritise people, not profit, and we’re committed to supporting councils in their mission to improve the lives of their communities.

Find out more about Norse Group’s partnership model.