These days everyone is trying to save money. Lithuanian municipalities are no exception, as many have acquired substantial debts. Their budgets are being cut left, right and center. This is because the crisis has decreased their tax revenues, but not their expenses.
One of the ways that municipalities are saving money, instead of simply cutting back on services, is to outsource work to companies more efficient and qualified to do it via public tenders.
Outsourcing services to companies works because the customer only needs to pay for the work that has been done. They do not have to buy, maintain and upgrade equipment and they do not need to train staff. Also private companies typically operate more efficiently than public companies, as they must compete with other private companies.
Outsourcing work in an economic climate like this also stimulates the economy by providing jobs in the private sector. Companies who take on outsourcing jobs are also more flexible and can hire staff when needed.
The streets are looking clean in Kėdainiai.
Recently, Domus Service won a public tender from the city of Kėdainiai to clean the streets and gutters. The city was looking to cut costs, and wisely chose to administer a public tender for street cleaning.
Now Kėdainiai saves about 50 percent for the same quality of service it had before. This translates to savings for everyone in Kėdainiai as less of a strain on taxpayers.
“In 2009 we published an open tender. The tender specifications were made for qualification requirements and the winner, corresponding to the qualification requirements, was determined by the lowest price criterion,” Kėdainiai municipality spokeswoman Aurelija Nugarienė said.
As the crisis hits Lithuania and the Baltic countries harder and harder, many companies are cutting their staff and expenses.
By outsourcing, a company can save funds and use services when it needs to without losing flexibility at a time when work and orders are uncertain and staff are often unproductive.
In Lithuania and in the Baltic states, outsourcing and accountability are the new order.
ADVERTORIAL SUBMITTED BY UAB DOMUS SERVICE
Disclaimer:
Views expressed in advertorial articles are never those of the Baltic Reports company or the website’s editorial team as a whole, but merely those of the submitting company.
