Outsourcing of Services: Case of the Czech Republic

The chapter deals with an analysis, assessment, and use of the outsourcing in a public institution that employs an external firm to service office and common office cleaning. Based on the methodology and objective were information established by personal interviews and monitoring, the calculation of the cost of individual employees was designed for all forms of employment, i.e., both the full-time and part-time employment, the work and job agreements and related number of cleaning staff, gross wage, health and social insurance payments, super gross wage, income tax, tax allowance, and net wage of the cleaning worker. Transferring the competence of an ancillary activity to an external company enables the public institution to have an advantage of focusing on the main activity, including the time advantage, as it can provide a higher quality of services to citizens (clients) with a lower administrative burden. The conclusion of the chapter assesses the advantages of outsourcing for the public sector including core business and risk transfer as a comprehensive solution of facility management with the emphasis on expanding and improving the portfolio of services in the future. Furthermore, the benefits of outsourcing in the context of the service sector, advantages and disadvantages of the client and outsourcing provider, current trends, development, innovations and changes in outsourcing in the context of services, the prediction of future development and the estimation of the use of outsourcing in services.