Advantages of outsourcing:1. Cost cuttingA business may find it cost-effective to outsource work to a third party which specializes in it by contracting a private vendor which has the ability to lower the cost of providing services and also protects the city from labor and equipment cost increases through the whole duration of the contract.2. Better quality of serviceMost of the time tasks are outsourced to vendors who specialize in their field. The outsourced vendors also have specific equipment and technical expertise, most of the times better than the ones at the outsourcing organization. Effectively the tasks can be completed faster and with better quality output.3. Increase accountability for service deliveryBy contracting, the city can thus hold the provider accountable for the poor service delivery through the usage of contract renewal, performance bonds and lateness penalties. Also, rebidding a contract gives the city the opportunity to make a comparison between the performances of different contractors because it enables a competition between them. Another plus would be given by the fact that performance bonds and lateness penalties protect cities from the effects of poor performance.Disadvantages of outsourcing:1. Risk of contractor failureFor example, the city must not risk outsourcing the functions referring to public safety, policy making and law enforcement since they are essential to the wellbeing and quality of life of the citizens. We have to keep in mind fact that maintaining control over the previously stated functions represents an important part of maintaining democratic control and accountability over city services. Hence, a way to minimize the risk of contractor failure is by first identifying and evaluating sources that are the best candidates for outsourcing and excluding those for which these risks are unacceptable.Moreover, outsourcing should never be considered for areas where there is not sufficient private sector expertise and experience and also not for new programs and initiatives with undefined goals and expectations.2. Loss of certain advantages derived from in-house workFor example, outsourcing certain services can lead to loss of control over personnel, work practices and also quality control.3. Disputes with contractors

Since their only motivation is fueled by profit maximization, contractors tend to be less responsible with the public assets and taxpayer dollars they receive. Furthermore, there is the genuine risk of contractor bankruptcy or failure that can put the provision of critical city services in jeopardy without adequate stop-gap measures in place.