Efficiency of outsourcing and factors determining it: Slovakia
| Authors | |
|---|---|
| Year of publication | 2013 |
| Type | Article in Proceedings |
| Conference | Regionalisation and Inter-regional Cooperation. Presented Papers from the 21st NISPAcee Annual Conference (from working groups and working sessions). |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | Outsourcing; public services; Slovakia |
| Description | Contracting/outsourcing public services to private for-profit and non-profit firms represent the most common types of alternative service-delivery arrangements. The relevant literature fo-cusing on the developed countries conditions, suggests that if, and only if the contract-ing/outsourcing are properly implemented, then they may, but need not improve individual choice, cost-effectiveness, delivery quality, equity, and expenditure control. In countries mak-ing the transition from socialism to market-based economies, or other transitional countries, the situation is much more complicated, as this chapter confirms. In this text we provide data about results from outsourcing in Slovakia and test the factors de-termining their success. Despite some methodological problems, the data suggests that exter-nalization of production generally delivers neither improved efficiency nor quality compared with internalized production. Although the data overall supports the case for internalization, it also reveals examples of effective outsourcing, thereby indicating the potential value of con-tracting if it is properly implemented. The main determinants of success of outsourcing are also evaluated. |
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