Outsourcing Public Services
Outsourcing means that an organization interrupts the internal production of goods or services and starts procurement from outside providers.
Outsourcing occurs when an organization decides to interrupt the internal production of goods or services and delegates that task to an outside provider. Consequently, outsourcing implies a separation between a purchaser and a provider, i.e., the purchaser-provider split. In general, organizations that outsource activities aim to achieve higher profitability by using fewer in-house resources (Barthelemy and Quelin 2006).
Applying this definition to the public sector, outsourcing means that the government which outsources the delivery of public services becomes the purchaser, while the external organization supplying the public service is the provider. Inspired by the principles of New Public Management, over the last 30 years, many governments in various...
KeywordsPublic Service Public Procurement Private Provider Contractual Relationship Contract Management
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