The rise in daily travelers on highways due to population growth, and higher quality and service expectations of the public, are putting increased demands on DOTs today. These demands, combined with decreasing staff sizes and changing resources, are causing DOTs to investigate alternative methods for accomplishing their essential functions. A major option is to contract out more of their work to external parties, commonly called “outsourcing .” The purpose of this project was to evaluate the potential effectiveness, benefits, concerns and implementation requirements of outsourcing by the Kentucky Department of Highways.

This report looks at current outsourcing practices in other states and in each KY district. It includes each districts’ recommended percentages that each function should be outsourced. Geography, volume of staff, and specialized district needs make outsourcing uniformly throughout the state undesirable. In addition to allowing fluctuation between districts’ outsourcing practices, maintaining core competency is also extremely important to receive positive results through outsourcing.

Outsourcing continues to be an increasing concern for the KyTC as it appears that a large number of senior employees are considering retirement in the next 3 years. This report will hopefully help with the planning efforts for this challenge.

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The contents of this report reflect the views of the authors, who are responsible for the facts and accuracy of the data presented herein. The contents do not necessarily reflect the official views or policies of the University of Kentucky, the Kentucky Transportation Cabinet. This report does not constitute a standard, specification, or regulation.