Singapore saves 22.5 mln USD per year by outsourcing services

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BPO Business Intelligence

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Dec 4, 2006, 10:27:23 PM12/4/06

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The Singapore government has contracted out 18 percent of the public
sector's non-strategic services, saving about 35 million Singapore
dollars (about 22.5 million U.S. dollars) of its annual operational
costs.

The Finance Ministry said a total of 226 or 18 percent of the
non-strategic functions were market-tested as of October this year and
158 functions have since been outsourced, according to a Channel
NewsAsia report on Monday.

The ministry said these projects were worth 664.7 million Singapore
dollars (about 428.8 million U.S. dollars), and the providers selected
were those which could perform the functions most efficiently and
effectively.

For example, the outsourced projects included the Manpower Ministry's
call center operation, the People's Association's maintenance and
cleaning services and the Health Sciences Authority's laboratory
support services.

Sourcing out non-core services not only saves costs but also allows
public agencies to focus more on their strategic functions, the
ministry said.