Five Critical Success Factors in Contracting for Outcomes

The Coalition Government plans to introduce more contestability into public services markets, including through the use of outcomes-based performance contracting in areas such as in welfare to work or criminal justice. Although the basics of contracting for outcomes models are widely known, there is less understanding, inside and outside government, on the technical challenges within the model and what is required to create a transparent, widely understood marketplace.

The Deloitte report addresses these points and takes a wider look at this developing market for public service delivery. Based on evidence provided by government departments and private and voluntary sector service providers, the report outlines 5 key areas where improved technical insight is needed to ensure markets function effectively in future. The report also looks at likely financing requirements for firms who want to enter these markets, and describes challenges and opportunities as contracting for outcomes is rolled out across multiple service areas. With major changes in the pipeline to the way public services are delivered, this report is part of wider work to examine the practical aspects of delivery model reforms, and government’s management of markets.





Deloitte Insights Study




Deloitte LLP


July 1, 2011

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