Governments around the world have increasingly turned to outsourcing various services to the private sector as a strategic approach to enhance efficiency, reduce operational costs, and leverage specialized expertise. Building and sustaining an efficient national identity framework is a fundamental mission of the state. It contributes to state security, economic development, and social cohesion. However, the task at hand is complex and requires highly specialized skills.
Poor identity systems lead to a number of major issues: individuals missing or being denied social benefits or access to the most primary private services, such as opening a bank account. Such flawed identity systems also provide fraudsters with ways to exploit and abuse citizens’ rights, generating extra expenditure for the state or extra costs and losses for a private entity. Moreover, mediocre identity documents, and the lack of tools to verify identities, facilitate the creation of false identities and identity theft that most often underpin financial fraud, as well as, in the worst case, terrorism and other serious forms of criminal activity; this also undermines border and citizenship controls and is highly detrimental to the protection of privacy.
In light of the benefits of outsourcing government services to the private sector, it is almost surprising not to see more governments going down this path for identity management systems. When it comes to identity management systems, the question to ask is not “Why?” but “Why not?” outsource.
Read our latest whitepaper that discusses the key benefits of outsourcing identity management services and the success factors to be considered.