Impacts of digitalization on the efficiency and quality of public services: A comprehensive analysis

Abstract

Digitalization has profoundly transformed the way public services are outsourced, bringing both significant opportunities and complex challenges for the management and quality of these services. Emerging technologies, such as Robotic Process Automation (RPA) and Artificial Intelligence (AI), have enhanced the efficiency of outsourcing processes by optimizing administrative and operational tasks, reducing costs, and speeding up execution. These innovations also improve system integration and communication between public agencies and their suppliers, promoting more effective coordination and minimizing operational errors. However, the implementation of new technologies requires substantial investments in infrastructure and training, which can be a challenge for public organizations with limited budgets. Additionally, transitioning to digital systems may face cultural and organizational resistance, particularly in contexts where job stability is highly valued. Ensuring the quality of outsourced services is crucial, and in this regard, digitalization enables real-time data collection and analysis, allowing for the monitoring of supplier performance and the maintenance of quality standards. This, however, necessitates the implementation of robust evaluation systems and the capability to manage large volumes of data effectively. Recent studies, including those by Fischer, Heuberger, and Heine (2021), Brdesee (2021), Syamsiar (2023), Shashyna et al. (2023), Alvarenga et al. (2020), Noor (2022), and Kim, Kim, and Choi (2020), highlight the significance of digitalization in enhancing public service efficiency and the need for more interdisciplinary research to understand its varied impacts. Digitalization not only improves the quality and efficiency of public services but also presents challenges that need to be managed to ensure successful and sustainable implementation.