Social outcomes contracting is an innovative form of procuring social services based on outcomes rather than outputs. Social outcomes contracting offers new opportunities for combining and directing public and private resources towards positive social impact. Typically, in SOC operations the service provider’s compensation is linked to a measurable social impact rather than to a specific set of tasks.
Social outcomes contracting is a powerful tool to:
- tackle social challenges by enabling investments in proactive and preventive actions,
- generate savings and improve cost-efficiency of public interventions, ensuring effective use of tax-payers money,
- test social innovation promoting strong knowledge-based management,
- encourage cooperation across government as well as across sectors.
Its practical implementation can make use of social impact bonds, payments by results or other similar operating models.
Here’s an example of a SOC scheme developed in Finland to accelerate the integration of migrants, and supported with funding from the EIF’s “Payment by Result” instrument under the European Fund for Strategic Investments (EFSI).
How can the Advisory Hub support Member States develop and use Social Outcomes Contracting?
To support countries wishing to develop outcomes-based approaches, the Advisory Hub hosts the Advisory Platform for Social Outcomes Contracting - a joint initiative of the European Commission and the European Investment Bank Group.
Created in early 2020, the Platform aims at supporting the development and use of social outcomes contracts (including social impact bonds and payment-by-results contracting, etc.) as a strategic and operational tool for delivering social impact and innovation to address key social inclusion challenges in Europe and contribute to society’s increased well-being.
The Advisory Platform for Social Outcomes Contracting offers the following support:
- Advice and individual project support, inter alia, early exploration, feasibility studies, co-creation processes, expert advice,
- Peer-to-peer knowledge exchange, awareness and capacity building leveraging local knowledge and sharing of know-how regarding project development,
- Developing guidance in areas of common interest for its stakeholders.
The Platform is ran in collaboration with national centres of expertise on Social Outcomes Contracting and Impact Investing, such as, the Finnish Centre of Expertise on Impact Investing, part of the Ministry of Economic Affairs and Employment, as well as the Swedish Centre for Impact and Health, part of Research Institutes of Sweden.
More info regarding identified support needs and proposed potential measures for catalysing development of social outcomes contracting in the EU is available in this report.
Who can request advice and support?
Support is available - free of charge - to public authorities. Our experts work hand in hand with public sector authorities to create a tailor-made advisory package to fit individual project’s needs.
We can provide support to your feasibility studies and can contribute to build capacity of public administrations through ad hoc trainings and workshops, facilitating connection to relevant European peers, etc.
You can send your request for support to us by answering the questions in this wizard.
How finance and social impact go hand-in-hand: Social Impact Bonds (SIBs) in Portugal webinar
On 24 March 2022, the EIB Institute hosted a webinar entitled: 'How finance and social impact go hand-in-hand: Social Impact Bonds (SIBs) in Portugal'.
Margarida Anselmo, Head of Governance Performance at MAZE Impact, shared the results of three impact bonds that have been set up in Portugal: Projeto Família, which helps children and young people at risk of becoming institutionalised, Faz-Te Forward and Bootcamps Academia de Código, which both tackle unemployment through programmes for developing skills. MAZE is an impact investing company created in 2013. MAZE invests in effective solutions that solve social and environmental challenges, helps entrepreneurs to expand their solutions to the European market and works with the public sector to improve the impact of social service delivery.
If you did not have the opportunity to join the event or would like to revisit some of the highlights, check out the video here.
Fostering Social Inclusion across the EU webinar
On 27 January 2022, the Advisory Platform for Social Outcomes Contracting (SOC Platform) organised the ‘Fostering Social Inclusion across the EU’ webinar.
This webinar showcased some of the SOC pilot projects in Spain, Italy, and Lituania supported by the SOC Platform, sharing knowledge and experience among public sector stakeholders and other SOC practitioners. It also focused on case studies developed within the context of the SOC Platform, and shared practical information regarding support opportunities available for public authorities interested in developing SOC.
If you did not have the opportunity to join the event or would like to revisit some of the highlights check out the presentations and webinar recording on the dedicated event page here.
Related Publications and other resources
- Feasibility study for social outcomes contract for Roma communities in the Slovak Republic
- Social Outcomes Contracting in Europe – Procurement Guide
- Children’s Welfare SIB, Finland
- Brabant Outcomes Fund in the Netherlands
- Hémisphère social impact fund, France
- Occupational Health Social Outcomes Contract, Sweden
- Multi-country Social Outcomes Contracting in Europe
- Koto-sib: fast integration and employment programme for immigrants in Finland
- Social Outcomes Contracting in Europe
- Social Outcomes Contracting Advisory Platform – Fostering Social Inclusion across the EU
- Impact co-creation step-by-step
- ADIE’s Social Impact Contract: Case Study