It is now beyond doubt that some of the biggest outsourcing companies can fail. For anyone who still disputes this then just mention the names Connaught, Southern Cross and Carillion. So, should local government be worried about its exposure to contracts with some of the major contractors still at play within the sector alongside the risk of service failure affecting some of the most needy and vulnerable in society?

When you see profit warnings taking place at companies such as Carillion, Serco and Keir then local authorities certainly need to be contingency planning with their ‘partners' for the possibility of the worst happening.