Outsourcing in Public Sector of Vanuatu Assignment

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Running head: OUTSOURCING IN VANUATU1Outsourcing in Public Sector of VanuatuName of the Student:Name of the University:Author’s Note:
OUTSOURCING IN VANUATUThesis Statement- The advantages and disadvantages of outsourcing and contracting out arediscussed in the essay.IntroductionThe islands of Vanuatu are a group of 80 islands located in the South Pacific Ocean.The island of Efate is the capital island of Vanuatu and it is the main economic center. Theisland was under British and French rule till the year 1980. Vanuatu has 6 provinces whichare run by the two Municipalities and Councils of the government. The infrastructure of theislands is comprised of three international airports, national and municipal roads and theeconomy of the country has shown a steady growth from the year 2004 to 2009. Outsourcingand contracting out in the public sector plays an important role in the economic growth of theislands (Gobble 2013).DiscussionThe outsourcing in the public sector of Vanuatu can be understood from its NationalPolicy Framework. Since its independence in the year of 1980, the government Vanuatu isplaying a pivotal role on investing in several projects for services and development in thecounty. But the company could not be successful in its endeavors and thus the governmentadopted a National policy in the year 1991 to undergo national reform. The government hasoutsourced the development of infrastructure by adopting a Priority Action Agenda Policysince the year 1991.The Impact of Contracting Out and Outsourcing In The Public Sector Of VanuatuOutsourcing encourages a competitive private sector to develop in the islands ofVanuatu. The level of requirements for subsidy for public utilities is minimized when thepublic sector contracts out. Outsourcing helps infrastructure and support services to be
OUTSOURCING IN VANUATUavailable to all industrial sectors of Vanuatu. The process of outsourcing makes all utilitiesand services in the island to meet quality standards and make them priced competitively.Outsourcing has been used for the development of ICT technology, roads, airports,ports and the master plan for infrastructure development has enabled seeking of financialassistance from Donors.Five reasons why Government opts for Outsourcing in the Public Sector in Vanuatu1) Outsourcing in public sector in Vanuatu helps inthe development of electricitysector inthe islands. The urban areas in the island have access to electricity and only 27 % of theinhabitants of Vanuatu have access to electricity. Funds from international countries help inthe development of wind, hydropower and geothermal power in Vanuatu. The public sectorand government is committed to develop the electricity sector in Vanuatu and achieve the settargets by the year 2020 with a public-private partnership. Outsourcing helps in supply ofelectricity in Port Villa, Tanna, Luganville and East Malekula (Satterthwaite 2015).2) In several parts of Port Vila and central areas of Mele,collection of solid wastesisoutsourced by the public sector of Vanuatu. This responsibility of collection of solid wastesis outsourced to a private company by the public sector (Woodruff 2014).3)Thesupply of waterto Port Vila has been outsourced by the public sector of Vanuatu to aprivate company Unleco Vanuatu and the public sector has also outsourced the projects fordevelopment of the infrastructure of water to the islands of Vanuatu and Blacksandsarea(Poustie and Deletic 2014).4) The market oftelecommunicationwas open to competition by the amendment ofTelecommunications Act of 2007.Digicel and Pacific Data Solutions are among the privateCompanies which provide telecommunication services in the islands of Vanuatu.
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