The Pigeons Coming Home to Roost: The Continuing Perils of Contracting Out in Canada

Abstract

This article explores the growing trend of contracting-out public services in Canada, highlighting its increasing impact on government activities as governments have expanded outsourcing from traditional goods like office supplies to complex infrastructure management and professional services. Recent cases, including federal government spending on consulting and high-profile failures of Public Private Partnership (P3) projects, underscore the need for critical reassessment. Two major areas—professional services and large-scale infrastructure management through P3s—are analyzed to understand the challenges and consequences of contracting out. The discussion highlights issues including inefficiencies, governance challenges, and risks associated with outsourcing, emphasizing the blurred lines and complications often existing between public, private, and non-profit sectors in service delivery. The article calls for reforms to enhance accountability, transparency, and efficiency, while also reconsidering the role of private and non-profit actors in public service delivery if sustainable effective outcomes are to be achieved.