Analysis and appraisal of strategies and mechanisms for outsourcing homecare

Local government authorities in the UK are increasingly outsourcing homecare from the private sector to deliver high quality care at low cost. This is causing the role of the local authority to change to that of an agent and regulator. The best value initiative, needs-led assessment, consumerism, client brokerage, greater freedom in the range of services that can be purchased and local variations in supply have brought about a new range of complexity of service allocations. The decision on whether to maintain elements of care provision in-house or to outsource them from the private sector and from whom in particular (the outsourcing decision) is key to the success of the local authorities´ homecare provision. This paper reviews the outsourcing decision in a sample of local authorities in England and Wales and how information and communications technology is being exploited in managing complex homecare operations. This is a timely appraisal of ´first generation´ outsourcing of homecare and proposes solutions to some of the problems identified. Although this paper focuses on the situation in England and Wales its findings are of international value as homecare is being outsourced in other countries.