Outsourcing companies are a business practice where an organization hires another company or a third party to provide services, perform some project, or maintain operations on behalf of the organization. When a state or the central government of a country outsources third-party service providers, it is termed government outsourcing.
Logistics, information, and performance management are among the most common sectors where governments and private enterprises outsource third-party service providers. Any organization outsources certain services to acquire knowledge and technology from outside experts for superior business outcomes. Business Process Outsourcing can help the organization reduce the salary and expenses paid to full-time employees.
How The Government Outsources in The US?
The US federal government outsources various contracts and services through numerous agencies within and outside the country. The government and the third-party service provider enter and agree on an outsourcing contract that involves the transfer of rights, responsibilities, and payment terms.
There are three ways the US government outsources – one is a complete service outsourcing with no capital investment by the service provider. The other way is the service provider builds, operates, and transfers the service. Lastly, the service provider builds, owns, handles operations, and transfers the project to the outsourcing US government agency.
1. Performance-Based Contracting (PBC)
Performance-based contracting is a purchasing strategy adopted to measure the performance or services by the service provider. The goal or purpose for the service is provided by the US government and the business process outsourcing companies work with enough manpower to develop solutions and achieve the goals pre-determined by the US Government Agency. As per the US government, PBC is the preferred method for acquiring services.
2. Build-Operate-Transfer (B-O-T)
A BOT is a project delivery method undertaken by outsourcing and service provider companies to build, operate and transfer a project asked by the outsourcing companies. Generally, the projects undertaken are public service development and large infrastructure projects involving public-private partnerships. In the BOT model, the project is built and financed by a private organization, which operates it for the next few years to earn profits and on completion of the contract, returns the project to the government agency that originally allocated them the project.
3. Build-Own-Operate-Transfer (B-O-O-T)
This outsourcing method is for large-scale projects like power station set-up, water treatment plants, sewage treatment systems, public infrastructure projects, etc. In this method, the government entities or agencies hand over the third-party service provider with financial, construction, ownership, and operation rights of the project for a specified period. It is quite similar to the BOT method, but the ownership of the assets is with the private company till the contract expires. Once the project tenure ends, the built project or the infrastructure is returned to the government agency that grants the project to the service provider.
Why ARDEM Incorporated is the best outsourcing partner?
Sectors that the US Government needs outsourcing services the most are public infrastructure, waste management, defense, and healthcare services. However, other sectors need third-party service providers to ensure the optimum utilization of government resources for better delivery of projects and services.
Cost reduction and leveraging external expertise for the smooth efficiency of their services are the most common reasons for Government agencies to outsource third-party service providers. ARDEM Incorporated pervades with virtual training, automation systems, and robotic process automation serving the industries like:
- Finance and Accounting
- Healthcare and life sciences
- Insurance Outsourcing
- Legal Outsourcing
In the process of outsourcing, contracting work to an international service provider can help the US government to reduce the cost of hiring, training, operating, technology, redundancies and taxes. ARDEM Incorporated brings tailored solutions for each sector and projects it provides services.
The services provided are in Business Process Outsourcing, Back-office Support, Utility Bill Management, Date-entry and government solutions by ARDEM incorporated to build the best possible solutions and create positive long-lasting business relations with continuous improvement.
ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs. For more information please reach out to us at email@example.com or call us at 908-359-2600.