When a commissioned service cannot deliver good outcomes or value for money, the financial, reputational and operational impact on the commissioning organisation and the impact on its service users cannot be underestimated.
Failures in prominent government contracts such as the collapse of Carillion have recently made the headlines. Critics of service outsourcing point to such examples as perceived failures in public sector commissioning; however, with £250bn spent by public organisations on goods and services every year, commissioning is not going away.
When contracts do fail, it should be a learning opportunity for commissioners and prompt positive - if occasionally painful - change.
Why contracts fail
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