“…Considerable research has focused on the capacity of service provider agencies to meet contractual requirements for reporting and accountability as well as actually delivering the services. A number of researchers in Australia, (Buchanan and Considine, 2002;Owen et al, 2001;Spall and Zetlin, 2004;Yeatman and Penglase, 2004) and in the US and Canada (Light, 2003;McMullen and Brisbois, 2003;Nittoli, 2003;O'Connor and Ilcan, 2005;Romzek and Johnston, 2005;Saunders and Brisbois, 2004) have identified a range of commonly reported challenges for service delivery as a result of these changes. In particular, the project-based, fixed-term funding arrangements typically associated with contracting out are seen to have resulted in increased use of short-term employment contracts by most NGOs, and there are arguments in the scholarly literature that this can seriously undermine the potential for capacity building in these agencies (Healy, 2004;Meagher and Healy, 2003;Wagner and Spence, 2003).…”