Detailed Information on Publication Record

"The chapter deals with an analysis, assessment and use of outsourcing. A public institution, that hires an external cleaning service company to clean offices and common parts, was used for the analysis. Outsourcing of a public institution was analysed to decrease possible financial, investment and operating expenses. As there are more types of employment, the chapter defines more possibilities including the calculation of total monthly and annual wage costs that the institution would spend if it did not accept the outsourcing and employed full-time cleaner from its own resources. In addition to each calculation, the cost of cleaning supplies, such as cleaning trolleys, industrial vacuum cleaners and mops, including external suppliers were assessed too. Based on the idea of financial savings, the emphasis was put on eliminating increased investment costs, minimizing the operating costs and reducing the wage costs, transforming investment spending into operational tax optimization, more transparent cost planning by reducing or eliminating hidden costs, and sharing investment risk. Transferring the competence of an ancillary activity to an external company enables the public institution to have an advantage of focusing on the main activity, including the time advantage, as it can provide a higher quality of services to citizens (clients) with a lower administrative burden. Through an external firm, the public institution does not have to implement any operational processes because they are in the competence of an outsourcing company, such as the management of cleaning staff costs, wage and accounting agenda, controlling activities, the transfer of cleaners, recruitment of new cleaning staff and similar. The conclusion of the chapter assesses the advantages of outsourcing for the public sector including core business and risk transfer as a comprehensive solution of facility management with the emphasis on expanding and improving the portfolio of services in the future. "