A new online tool is being offered to civil servants to help them determine if a successful market could be built around public services.
The programme, designed by the Institute for Government (IfG), asks officials a series of questions designed to test if a functioning market could be established for a public service.
Questions posed by the diagnostic tool include whether a range of providers are available for the contract, the likely impact of government policy on services, and whether a suitably qualified workforce is available to ensure a public service market functions well.
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After civil servants have answered all of the questions, a report is generated rating different aspects of the proposals as "red", "amber" or "green", and including suggestions for addressing the risks identified.
The software has already been used by some civil servants, and the think tank hopes the tool will help Whitehall make more robust choices during the next wave of cuts. The initiative comes after a number of high-profile outsourcing scandals, including G4S's bungling of security arrangements for the 2012 London Olympics and suppliers overcharging the Ministry of Justice for the electronic tagging of prisoners.
IfG programme director Jo Casebourne said the tool would help the civil service "develop the right mechanisms, skills and capacity to ensure public service markets are professionally designed, managed and stewarded".
The CBI employers’ organisation has endorsed the tool and an accompanying guide, describing it as "a timely reminder to those charged with the stewardship" of public services.