Public sector bodies working with the private sector to provide public services is now common practice. However PPP needs to overcome certain challenges such as reducing procurement costs, addressing 'best value' and ensuring that bidders link facilities management and construction matters. Describes the various forms of the process, using examples taken from the UK, Italy, Malaysia and South Africa. Italy's PFI is governed by the Merloni law, which provides a schedule for the submission and acceptance of PPP projects but it is complicated by regional laws and under administrative law changes can be made without any recourse to the private sector partners. Malaysia has already successfully outsourced or privatised services traditionally provided by the government. PPP will continue to grow as Malaysia concentrates on promoting a knowledge-based economy. In South Africa, 'contracting out' is the preferred term to outsourcing with the government careful over the use of outsourcing and privatisation especially with protests from the trade unions.