Understanding costs of providing/delivering products and services

At the present time there is evidence that Government does not have an understanding of the full costs of many of the services it provides and products it delivers. In many cases the direct costs are all that are attributed to an area with others being dealt with centrally such as administration, accommodation, pensions and IT. All delivery units should be treated as cost centres so that when consideration is being given to outsourcing or charging then either a realistic price is sought, which betters Governments own costs or attain full cost recovery. Without knowing the detailed costs it is difficult to determine what savings can be achieved or if they have.

All developments and new projects should be accompanied by robust business plans.

 

Idea received via email - Site Moderator

Why the contribution is important

 

As above.

 

by MelindaIOMGov on May 16, 2017 at 03:01PM

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