Lucinda Creighton (Dublin South East, Independent)
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132. To ask the Minister for Social Protection the total amount of outsourcing that has been achieved in her Department since the letter sent by Secretary General of the Department of Public Expenditure and Reform in March 2012; the names of the outsourcing companies that have been involved; the total savings achieved; and if she will make a statement on the matter. [3305/14]

Joan Burton (Dublin West, Labour)
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The Department has for many years contracted extensively with third parties for the delivery of services. In general, the contracts are used to supplement and complement, rather than replace departmental activities. For example, about half of the Department’s public offices are operated by private sector providers. The Department also contracts with third party payment agencies, with third party providers of IT services and with third party providers of employment and illness/disability services. The Department spends some €120M annually with external providers, which represents about 20% of overall administrative costs.

The Department’s records show that, since March 2012, external service delivery contracts have been signed to a total amount of c. €150M (excluding VAT). Some of these contracts extend over a number of years. These include new and renewed contracts for the provision of Local Employment Services (LES) and Job Clubs as well as contracts for the provision of services such as file management, staff training and IT support. The names of these contractors are set out in appendix 1 hereunder.

As the contracts are, in general, not used to replace or substitute any existing Departmental activities, the issue of savings does not tend to arise. The Department pursues cost savings through a rigorous competitive tendering process as appropriate.

Appendix 1