Outsourcing case work

This Danish National Centre for Social Research (SFI) report illustrates how the state and municipalities buy in case officers from external players in accordance with the “More People into Employment” reform of 2002.
The report shows that the market and competition have been relatively small for municipal tasks, while they have been far greater for state tasks at job centres.
The report also shows that, in the period studied external players have a softer approach towards the unemployed than both the municipalities and the state. This means the external players are not taking the more strict approach intended in the “More People into Employment” reform.
Finally, the report indicates that external players are considerably more expensive than if the same tasks are carried out by the state. This may be due to lack of competition and cost-consciousness when using external players; job centres can get help from other players without making savings in their own staff.
Analyses in the report are based on questionnaire surveys among managers and case officers at job centres, municipalities and external players in 2005-2006, as well as on register data and financial analyses. The survey has been carried out at the initiative of SFI and funded by the Ministry of Employment and SFI.