Outsourcing Decisions in Public Sector Organizations

Abstract

This article provides a brief overview of the history of outsourcing and different perspectives of scientists
towards the economic meaning of outsourcing. Since this phenomenon first appeared in the private sector organizations,
different definitions of outsourcing are discussed. Based on the analysis of experiences of private
sector organizations, preconditions for application of outsourcing tools in public sector organizations are emphasized.
The authors conclude that it is important to perform a very clear economic assessment of the use of
outside services, to assure a strong control of the service provider, to periodically review the contracts, etc.
Also, the final results of empirical research, which aimed to assess the temporary work outsourcing in public
sector organizations, are presented in the article as well.