Government policy, public value and IT outsourcing: The strategic case of ASPIRE

The paper examines government IT outsourcing polices. The paper critiques the concept of ‘the Contract State’, and suggests how more disciplined uses of outsourcing can assist the creation of public value, more broadly conceived. Within the context of international developments, we study the United Kingdom Inland Revenue (IR), Customs and Excise (HMRC) and Department of Social Security (DSS) and their IT outsourcing contracts. The evidence suggests that outsourcing and marketization initiatives have adverse public value impacts, and may need to be rethought. Major IT operations and innovations, for example e-government, National Health Service (NHS) and identity card IT policies in the UK, are managed and generate legacies that do not always make efficient and effective use of the market. Moreover, their objectives, implementation and management over time may truncate their value to the public at large. Applying a revised Public Value policy approach offers a richer perspective to guide central government decisions worldwide about future IT outsourcing.