Outsourcing in the public services: a comparative analysis of practice, capability and impact

Abstract This article analyses thinking and practice concerning privatization and outsourcing in the public services and compares recent trends with the findings of an extensive comparative survey of outsourcing conducted at Cranfield School of Management. Particular attention is paid to the systems and processes being outsourced, their importance to the organization and the impact of outsourcing on public service organizations. The results of the survey suggest that public service managers are more skilful than managers from the private sector at handling the transactional aspects of outsourcing. However, managers from public service organizations, unlike managers from the private sector, assert that outsourcing is damaging the running of public service enterprises. It is concluded that until the political and administrative processes are more closely aligned public service managers will continue to hold a more negative view of outsourcing. Copyright © 2001 John Wiley & Sons, Ltd.