Quality and outsourcing in Public Organizations

The aim of this research is to establish a link between the process of outsourcing and development of the process of Total Quality Management (TQM) with particular regard to public utilities. Outsourcing choices are one way to increase efficiency and quality in any type of organization, both public and private. The public sector can benefit from outsourcing in much the same way as the private sector. Indeed, the public sector is showing a greater impetus in its examination of outsourcing. Public organizations are facing the changes that have affected the economy and society to increase the welfare of the consumers. They therefore need to seek high levels of efficiency, ensuring better use of resources to meet needs that characterize this period of history: on the one hand the need for quality services for the economic and social development of the country in line with the international challenges, on the other the need to contain the public deficit as a fundamental condition for sustainable and balanced development. The search for better ways of the use of resources is especially important in organizations that do not deal with the market through the mechanism of the exchange, especially in those organizations that establish public services that are provided without exchange in an economic sense. Public organizations in the quest for efficiency, flexibility and innovation turn more frequently to outsourcing because the integrated service providers (Global Provider) are able to assume full responsibility for financial performance and quality of services provided. First, the definitions of TQM are discussed. Second, link between outsourcing and quality is presented. Finally, we have highlighted the main factors of resistance to externalization in Public organizations and how these can be overcome by eveloping a risk management approach.