The outsourcing activity within the public sector has improved beginning a couple of years ago, mainly for the reason of cutting costs and improving agency efficiency, which are the primary pitch of the outsourcing industry. As the idea of outsourcing spreads out even with government agencies across the globe, finance and accounting outsourcing solutions providers now strive to improve their capabilities, especially because government transactions require extra care and efforts when it comes to security. It may sound similar because core finance and accounting tasks are finance and accounting tasks but it is when you start to move towards the exterior, that is where you will notice the difference between outsourcing services for the private sector and the public sector.

Following the UK elections and subsequently, the naming of the country’s new Prime Minister David Cameron and Chancellor George Osborne has pushed government outsourcing contracts in limbo, as companies anticipate the stance the new government will enforce.

The Big Blue is making the state of Indiana and its residents see red. In a series of events that began with the signing of a very profitable outsourcing deal between the state of Indiana and technology outsourcing company IBM, the deal has now ended up with IBM (NYSE:IBM) filing a countersuit against Indiana late last week in an affair that began as, well, somewhat good, to bad and now, to worse.