Contracted services

Contracted services- commonly referred to as outsourcing-refers to the practice of making agreements with outside organizations to provide services in the school district. School districts may consider outsourcing to reduce costs on non-instruction services. Districts benefit by reducing costs on essential services while providing high-quality service. While districts often partner with for-profit organizations, increasingly they are securing partnerships with community partners. Potential outsources services include: food and nutrition; transportation; security; custodial services; building and maintenance; after-school activities; and tutoring. Advantages and disadvantages of outsourcing school services include:

Advantages:

• Reduced purchasing costs (contractor has ability to buy in high volumes);
• Potential for better quality service due to professional training or experience;
• Decreased labor costs; and
• Potentially better management and higher productivity within each contracted department.

Disadvantages:

• Outside employees may not have loyalty to or understanding of the district;
• Turnover of outside employees may be high if the contractor does not supply good benefits or salary;
• Perceived loss of control over some operations; and
• Contracts have the potential to be long-term and legally biding

From Rennie Center for Education Research and Policy