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Outsourcing by Private and Public Organisations: How much Could Public Bodies Learn?

Author

Listed:
  • Marketa Sumpikova

    () (University of Finance and Administration)

  • Juraj Nemec

    () (Banking Institute/College of Banking)

  • Martina Petrova

    () (University of Economics, Prague)

  • Beata Merickova

    () (Matej Bel University Banska Bystrica)

Abstract

Outsourcing is already for longer period used in private sector as a tool of rationalization of internal processes. As the result of New Public Management changes it was started to be implemented also in public organizations. The paper starts with brief introduction of the concept of outsourcing, both in relation to private and public sector practices. Its core parts are devoted to analysis of experience with outsourcing of internal services in private and public organizations in the Czech Republic and Slovakia. Some interesting conclusions are derived from the research. First, outsourcing is relatively frequently used by private firms in the Czech Republic. Second, we may argue that the “quality” of implementation of outsourcing in the private sector in the Czech Republic is a bit limited. Results from our analysis support general expectations that in conditions where the private sector is not able to deal with outsourcing perfectly (and risk of corruption is relatively high), the practice of outsourcing in the public sector is of limited quality.

Suggested Citation

  • Marketa Sumpikova & Juraj Nemec & Martina Petrova & Beata Merickova, 2013. "Outsourcing by Private and Public Organisations: How much Could Public Bodies Learn?," ACTA VSFS, University of Finance and Administration, vol. 7(1), pages 63-79.
  • Handle: RePEc:prf:journl:v:7:y:2013:i:1:p:63-79
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    File URL: http://www.vsfs.cz/periodika/acta-2013-01.pdf
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    References listed on IDEAS

    as
    1. J. Ignacio Conde-Ruiz & Paola Profeta, 2007. "The Redistributive Design of Social Security Systems," Economic Journal, Royal Economic Society, vol. 117(520), pages 686-712, April.
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    More about this item

    Keywords

    outsourcing; internal services; public sector; private sector; Slovakia; Czech Republic;

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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