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Focus on Expenses Fae bs www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 349 Local Outsourcing/Consolidation: Improve Efficiency of Public Services Through Automation / Scale / Flexibility 1. Automation — Government agencies cannot afford to perform manual routine-based processes that can be replaced more efficiently by technology. 2. Scale — Consolidation of non-core processes across agencies or outsource non-core processes to local companies can deliver scale efficiencies. 3. Flexibility — Outsourced labor enables temporary employment in situations where hiring full-time workers would be costly and unnecessary. a Sources: Adam Frisch, Morgan Stanley Research. CB www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 350 HOUSE_OVERSIGHT_021016