The South African government is considering a phased approach to insourcing core government services, according to Public Service and Administration Minister Mzamo Buthelezi. The Department of Public Service and Administration (DPSA) is weighing issues related to funding, capacity, and the outcome of Parliament's Insourcing Bill. Buthelezi made these remarks in response to parliamentary questions from MK Party MP Japhta Sihle Malinga.
The Insourcing Bill, introduced by EFF MP Omphile Maotwe last year, aims to compel all organs of state to employ workers to provide regularly required services, including security, cleaning, and health-related services. The bill also requires the Minister of Public Service and Administration to develop an insourcing policy. However, the DPSA has noted that the blanket mandate proposed by the bill is currently unfeasible and estimated that it would add between R30 billion and R50 billion annually to the public service wage bill.
Buthelezi stated that the DPSA has not determined specific percentages of services suitable for immediate, phased, or continued outsourcing. Any such determination would require consideration of the department's operational requirements, available internal capacity and skills, service-delivery requirements, cost-effectiveness, sustainability, and budget availability. The DPSA currently outsources one category of government service, namely security services, which supplements the permanent security personnel employed by the department.
According to Buthelezi, there are currently 14 security personnel engaged through the outsourced security services arrangement. However, no additional services have been identified for immediate insourcing at this stage. A specific percentage for phased insourcing cannot be determined at this stage, as this would depend on funding availability and an assessment of the appropriate service-delivery model.
The DPSA's proposed phased and conditional approach to insourcing was presented in the context of the assessment and consideration of the Insourcing Bill. Buthelezi emphasized that this approach should not be interpreted as an approved proposal for implementation within the DPSA. The department is currently awaiting the outcome of the legislative process and the applicable legislative and policy framework.
Once there is sufficient clarity on the legislative and policy position, the Department will consider the appropriate framework and implementation arrangements to support cost-effective, sustainable, and efficient service delivery. Buthelezi did not provide a definitive date for the finalization of an insourcing framework, citing the need for careful consideration of various factors.
The development of an insourcing framework will depend on several considerations, including the outcome of the legislative process and the applicable legislative and policy framework. The DPSA will need to assess the availability of funding and the most appropriate service-delivery model to ensure cost-effective, sustainable, and efficient service delivery.
Key points
- The South African government is considering a phased approach to insourcing core government services.
- The Department of Public Service and Administration has not earmarked specific services for immediate insourcing.
- The Insourcing Bill aims to compel all organs of state to employ workers to provide regularly required services.
