In a number of countries, governments have contracted out some of their publicly-funded career guidance services, often as part of outsourcing a wider range of public employment services. In Austria, for example, some guidance services – including six-week orientation courses to improve the employability of young people aged 14-20 – have been contracted out to a range of for-profit and not-for-profit organisations; the production of career information has been contracted out too. In Australia, the entire public employment system was contracted out in the 1990s. Sub-contracting has also been used extensively in the Netherlands (OECD, 2004).

Contracting-out can be an attractive policy option for a range of reasons. It can be cheaper: staff in contracted agencies tend to have lower salaries and fewer benefits than civil servants. It can be more flexible: subcontracted services tend to be less bound by bureaucratic regulation. It can also lead to services being closer to the targeted clients and hence more attuned to their needs.

On the other hand, contracting-out can lead to uneven standards of delivery. A way of counteracting this is to develop a strong quality-assurance system. This is the approach adopted in relation to information, advice and guidance services for adults in England, where all organisations receiving public funds to provide such services must meet the Matrix quality standards.