According to this report from eGov monitor, a site covering e-government activities in the UK and elsewhere, user satisfaction in local government services declined in those agencies where outsourcing prevailed. Here are excerpts from the article, which summarized findings of a survey done by the Society of Information Technology Management among 25% of UK “local authorities”:
The largest deterioration in scores after outsourcing was in perceptions of value for money and the management of the ICT unit, the report says.
Significantly, outsourcing also impacted negatively on perceptions of the working relationships between users and service providers, as well as the speed of response and ease of contact of support staff.
However outsourced delivery did outperform in-house services in satisfaction levels for some areas, such as whether users felt that ICT facilities were up-to-date.
You can order a copy of the report for £175 here.